Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Major League Baseball Accused of Antitrust Violations for Blocking Relocation of Athletics to San Jose, (Jun 19, 2013)

By William Zale, J.D.

The City of San Jose has brought suit asserting that Major League Baseball (MLB) has engaged in monopolization and restraint of trade in violation of the Sherman Act and Cartwright Act by blocking the relocation of baseball clubs, including the relocation of the Athletics Baseball Club from Oakland to San Jose. The complaint in City of San Jose v. Office of the Commissioner of Baseball dba Major League Baseball was filed in the federal district court in San Jose on June 18, 2013.

The city alleges that MLB clubs are actual competitors in the market for major league men’s professional baseball games and have conspired with and through MLB to maintain monopoly power in their operating territories by refusing to allow the relocation of MLB Clubs to markets where existing clubs currently have territorial rights, according to the complaint. MLB clubs, like other sports leagues, have structured their governance to permit major decisions regarding off-field business competition to be made by the club owners themselves, who act in their own economic self-interest by entering into a series of agreements that eliminate, restrict, and prevent off-field competition, according to the complaint. MLB and its clubs allegedly have agreed to create exclusive television and radio broadcast rights within designated territories through contracts with individual MLB Clubs.

In addition to Sherman Act Section 1 and 2 and the Cartwright Act claims, the city asserts violations of the California Unfair Competition law and common law tortious interference claims. The city requests injunctive relief and awards of treble damages, actual and punitive damages on the pendent claims, and attorney fees and costs.

The case is No. cv-13-02787 HRL.

Attorneys: Joseph W. Cotchett (Cotchett, Pitre & McCarthy, LLP) for City of San Jose.

Companies: City of San Jose; San Jose Diridon Development Authority; Major League Baseball

News: Antitrust CaliforniaNews