MLB/NHL Broadcast Monopoly Class Action Lawsuit Moves Forward
By Matt O’Donnell
Baseball and hockey fans have something to cheer about following a recent court decision that allows them to pursue a class action lawsuit alleging the National Hockey League, Major League Baseball, Comcast Corp. and DirecTV created a monopoly over sports broadcasts that forces consumers to pay high prices to watch games.
U.S. District Judge Shira A. Scheindlin refused to dismiss antitrust claims brought by MLB and NHL telecast subscribers who allege the defendants used various anti-competitive means to control and stifle the broadcasting market and allow the charging of inflated prices.
“The defendants have accomplished this elimination of competition by agreeing to divide the live-game video presentation market into exclusive territories, which are protected by anti-competitive blackouts [that don’t allow certain games in certain markets to air],” the consolidated class action lawsuit states.
Judge Scheindlin dismissed only one antitrust claim against Comcast and DirecTV and the regional network broadcasters, but left the entire case against the sports leagues intact. Scheindlin also dismissed a number of named plaintiffs for lack of standing.
“Plaintiffs have plausibly alleged that the NHL and MLB have used their monopoly power to restrict the broadcast of television programming in a manner that harms competition,” Judge Scheindlin said.
The MLB/NHL Broadcasting Monopoly Class Action Lawsuit case is Laumann et al. v. National Hockey League et al., Case No. 12-cv-01817, in the U.S. District Court for the Southern District of New York. The plaintiffs are represented by Michael M. Buchman of Pomerantz Grossman Hufford Dahlstrom & Gross LLP and Edward Diver, Howard Langer and Peter Leckman of Langer Grogan & Diver PC.
Updated December 12th, 2012
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