U.S. sues AT&T, DirecTV for collusion over Dodgers broadcasts
Back in September it was a big deal when it was announced that Vin Scully’s final games as Los Angeles Dodgers announcer would be broadcast throughout Southern California. And the reason it was a big deal is because Dodgers games aren’t available in that area unless you subscribe to Time Warner Cable. SportsNet LA broadcasts more than 150 Dodgers games a year, and that channel is only available on TWC.
That unpleasant situation for Dodgers fans in Southern California is now the subject of a lawsuit brought by the US Justice Department. Bloomberg has reported that they’re suing AT&T and DirecTV for colluding with other TV providers to gain leverage during their negotiations with TWC to air Dodgers games. Basically, the Justice Department is saying that AT&T and DirecTV shared information about their intentions to carry SportsNet LA with their competitors, all so they could get a leg up in negotiations with TWC. Bloomberg summed it up nicely:
“These unlawful exchanges were intended to reduce each rival’s fear that competitors would carry the Dodgers Channel, thereby providing DirecTV and its competitors artificially enhanced bargaining leverage to force TWC to accept their terms,” the complaint states.
And the result? A huge chunk of Southern California gets zero access to Dodgers games. The Justice Department is seeking a court order barring DirecTV and AT&T from doing what they were allegedly doing before: sharing non-public information about their negotiating positions and strategies with their rivals.
DirecTV and AT&T are both named in the suit, though the collusion happened before AT&T bought DirecTV in 2015. This was a fact that David McAtee, general counsel for AT&T, was quick to point out to Bloomberg. He gave an alternate explanation to them in an emailed statement.
“The reason why no other major TV provider chose to carry this content was that no one wanted to force all of their customers to pay the inflated prices that Time Warner Cable was demanding for a channel devoted solely to L.A. Dodgers baseball.”
Saying “a channel devoted solely to L.A. Dodgers baseball” makes it seem like SportsNet LA is some kind of hare-brained idea that no one has any interest in. The Dodgers play in a huge city with reach far beyond the confines of Los Angeles. Having just one cable company carry Dodgers games not only limits the Dodgers, but it’s a huge disservice to fans throughout Southern California.
However this plays out, it’s going to be interesting. And who knows, it could even result in more fans gaining access to Dodgers games.
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Liz Roscher is a writer for Big League Stew on Yahoo Sports. Have a tip? Email her at lizroscher@yahoo.com or follow her on twitter! Follow @lizroscher
