CONSPIRACY AND MONOPOLIZATION CLAIMS AGAINST COMCAST ARISING FROM CABLE SYSTEM SALE AND ACQUISITION TRANSACTIONS SURVIVES MOTION TO DISMISS
Federal District Court in Pennsylvania refused to dismiss conspiracy and monopolization claims against Comcast arising out of transactions in which Comcast had both purchased and sold geographically separate local cable television systems to competitors in exchange for other systems. Glaberson, et al. v. Comcast, et al., Civil Action No. 03-6604 (E.D. Pa. August 31, 2006). The rapidly consolidating cable television industry frequently uses transactions in which large cable companies "swap" cable systems in different geographic areas with the goal of assembling larger contiguous areas in which each cable company provides services. The economic motivation is that assembling larger contiguous areas makes administering such contiguous cable systems cheaper and more efficient. Such swaps are also done on the basis of swapping subscribers, rather than entire cable systems, again in an effort to increase the effective economic size of contiguous service areas.
Continue Reading...