A Ninth Circuit panel has ruled 3-0 that it is not an antitrust violation for cable companies to bundle channels in packages instead of allowing consumers to pick and choose between individual channels. Cable and satellite TV customers had brought suit against programmers such as NBC Universal and Walt Disney, as well as distributors like Comcast and DirecTV. The group alleged that programmers use their market power to require distributors to package channels as a mix between high-demand and low-demand channels, thereby harming competition among distributors.
Judge Sandra Ikuta likened the practice of bundling channels in a package to musicians selling songs on a full album. The panel pointed out that plaintiffs failed to allege harms such as exclusion of other sellers of low-demand channels, or increased entry barriers in the programming market. The court below had found that packaging channels does not necessarily harm competition.
Full content: SFGate
Related content: The End of Per Se Illegal Tying (Christopher R. Leslie, University of California – Irvine)
Featured News
Google and South Carolina Clash Over State Records Demand
May 8, 2024 by
CPI
Telefonica Germany Teams Up with Amazon Web Services to Migrate 5G Customers
May 8, 2024 by
CPI
Federal Judge Grants $7.4 Million Settlement in Pork Price-Fixing Case
May 8, 2024 by
CPI
Wilson Sonsini Bolsters Antitrust and Competition Practice with Key Partner Returns
May 8, 2024 by
CPI
EU to Scrutinize Telecom Italia’s Network Sale to KKR
May 8, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI