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Communication Law Keyed to Benjamin, 2nd Ed.
National Cable & Telecommunications Association v. Federal Communications Commission
Citation:
567 F.3d 659 (2009)Facts
In 2007, the FCC issued an order prohibiting cable operators from enforcing existing exclusivity agreements and executing new ones with MDU owners. The FCC found that these agreements significantly harmed competition and consumers by raising prices, limiting access to programming, and delaying deployment of advanced technologies. The FCC emphasized the growing importance of “triple play” offerings (bundled video, telephone, and internet services) and found that exclusivity agreements prevented competitors from offering these beneficial packages to MDU residents. The FCC determined that the anti-competitive harms of exclusivity agreements outweighed any potential benefits, such as encouraging investment or enabling residents to pool bargaining power. The order applied to both new and existing contracts, with the FCC concluding that allowing existing agreements to continue would perpetuate harms to consumers for years.
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