Yankees Entertainment & Sports Network (YES) filed antitrust suit...
Yankees Entertainment & Sports Network (YES) filed antitrust suit against Cablevision, charging cable operator had illegal monopoly that was keeping Cablevision subscribers from viewing YES. YES CEO Leo Hindery told us he was confident U.S. Dist. Court, Manhattan, would…
Sign up for a free preview to unlock the rest of this article
If your job depends on informed compliance, you need International Trade Today. Delivered every business day and available any time online, only International Trade Today helps you stay current on the increasingly complex international trade regulatory environment.
find that Cablevision had refused to sign carriage deal with YES for anticompetitive reasons. “They're not solely a cable operator. They're a cable operator and a programmer. And they are not only a cable operator and a programmer but a competitor,” Hindery said, pointing to Cablevision’s Madison Sq. Garden (MSG) and Fox Sports N.Y. networks as examples of networks in which Cablevision has ownership stake and that go head-to-head against YES for sports viewers. “When you have dominance, you have a responsibility not to use it abusively,” he said. Suit, filed Mon., charged violation of Sherman and Clayton Acts and of FCC rules on exclusivity. Specifically with regard to FCC, YES alleged that Cablevision said it would carry YES only if there were cable exclusivity and network was not made available to satellite distributors. YES seeks unspecified monetary and injunctive relief, and declaratory judgment in its favor. Asked whether YES could survive without Cablevision carriage, Hindery conceded that “it’s a huge, important part of our business model,” but said deals with other MSOs would keep YES in business. YES is charging $2 per subscriber and has asked to be carried on basic tier. Cablevision wants to put it on pay tier but has also offered to allow YES channel to set price and keep all money associated with it. Cablevision responded that lawsuit was without merit and best way to resolve issue would be “through negotiation, not litigation.” It said YES was trying to impose “take-it-or-leave-it” demand that wasn’t in best interest of Cablevision subscribers. “YES has rejected every good-faith attempt to resolve this matter,” Cablevision said.