March 14 (Reuters) – Satellite tv for pc supplier DirecTV on Tuesday sued Nexstar Media Group Inc (NXST.O) and two different tv station house owners in Manhattan federal court docket, claiming they violated antitrust regulation by scheming to drive up retransmission charges for stations broadcasting the 4 main networks.
The lawsuit seeks an order blocking Nexstar, the biggest native TV station proprietor in america, from allegedly colluding with Mission Broadcasting Inc and White Knight Broadcasting Inc in price negotiations with DirecTV.
Pay-TV suppliers pay retransmission charges to station house owners to broadcast their content material. DirecTV’s lawsuit mentioned the defendants disadvantaged it “of a good aggressive course of that has resulted in larger costs being demanded of it and misplaced earnings,” in accordance with a redacted model of the lawsuit seen by Reuters.
Nexstar spokesperson Gary Weitman mentioned DirecTV’s claims had been “with out advantage” and the corporate would combat them in court docket. He mentioned its agreements with the station teams complied with U.S. Federal Communications Fee tips.
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A Mission consultant didn’t instantly reply to a request for remark. A consultant for White Knight couldn’t instantly be reached.
Twenty-seven stations owned by Mission and White Knight have been unavailable for DirecTV prospects since October 2022 after they did not agree on retransmission charges. Nexstar is predicted to renegotiate its retransmission agreements with DirecTV, which is 70% owned by AT&T, probably by later this 12 months.
The lawsuit mentioned that by conspiring to set retransmission charges, the station teams compelled suppliers and their prospects “to pay supracompetitive costs or lose entry to the most well-liked broadcast tv programming.”
The lawsuit claims that Nexstar, which beforehand owned Mission and White Knight’s stations, nonetheless retains the final word financial curiosity within the stations though they’re purported to be impartial.
Michael Hartman, DirecTV’s common counsel, mentioned it determined to sue as a way to “deliver some transparency” to what it calls anticompetitive conduct.
Reporting by Jacqueline Thomsen in Washington
Modifying by David Bario and Matthew Lewis
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