The US Supreme Court has declined to hear Nexstar Media Group’s appeal seeking to block an antitrust lawsuit brought by DirecTV over allegedly inflated fees for television content.
The justices’ decision on Monday, October 5, leaves in place a ruling by the 2nd US Circuit Court of Appeals allowing DirecTV to pursue its claims against Nexstar and two other station owners. DirecTV alleges that the companies worked together to demand artificially high fees for the rights to distribute certain television channels.
DirecTV refused to pay the disputed rates, resulting in some stations becoming unavailable to about one million subscribers. The company says thousands of customers cancelled their subscriptions and that it suffered lost revenue as a result.
Nexstar argued that DirecTV should not be allowed to bring an antitrust claim because it never paid the allegedly excessive fees. The company also warned that the appeals court ruling could expose sellers to broader legal liability.
The Supreme Court’s refusal to take up the case means the lawsuit can proceed in federal court in New York. The dispute comes as Nexstar faces separate antitrust challenges over its proposed merger with rival broadcaster Tegna.
Nexstar operates 265 television stations across 132 markets in 44 US states, making the case significant for the wider broadcasting industry and the fees distributors pay to carry local television channels.
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