Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Cablevision, Viacom settle channel-bundling suit, (Oct 19, 2015)

By Linda O’Brien, J.D., LL.M.

Leading media and telecommunications company Cablevision Systems Corporation has settled its channel-bundling suit against entertainment media company Viacom International, Inc. and the companies are simultaneously entering into a mutually-beneficial business arrangement, according to a joint statement released on October 16 (Cablevision Systems Corporation v. Viacom International, Inc.).

In February 2013, Cablevision filed suit against Viacom, alleging that its licensing agreement with Viacom—which required the bundling of individual cable channels into subscriber packages—constituted illegal tying and block booking arrangements in violation of the Sherman Act and New York Donnelly Act. Cablevision alleged that it was required to contract for certain less popular programming networks in addition to eight commercially critical “core” networks and that Viacom threatened a substantial financial penalty for declining to purchase the less popular networks. In June 2014, the district court denied Viacom’s motion to dismiss the complaint.

The details of the settlement and business arrangement were not disclosed.

“We are pleased to have put these matters behind us in ways that benefit both of our companies and look forward to working together to benefit Cablevision’s customers,” the companies announced in the joint statement.

Companies: Cablevision Systems Corporation; Viacom International, Inc.

News: Antitrust NewYorkNews