The Department of Justice (DOJ) is filing suit against DirecTV and its new owner, AT&T, for allegedly colluding against a channel carrying Dodgers baseball games in Los Angeles.
The lawsuit, announced Wednesday, claims that DirecTV illegally shared information with competitors about their negotiations to carry the channel SportsNet LA. DirecTV had balked at carrying the channel, claiming that its price was too high, and is accused of trying to convince other providers to also not carry the channel.
{mosads}The DOJ claims DirecTV unlawfully exchanged competitively sensitive information with cable companies Cox, Charter and AT&T to win leverage in their talks and reduce the risk of losing subscribers if they decided not to carry the channel.
The lawsuit claims those actions hurt fans who haven’t been able to watch Los Angeles Dodgers games on TV for the last three seasons because some companies decided not to carry the channel based on the information they received.
“As the complaint explains, Dodgers fans were denied a fair competitive process when DIRECTV orchestrated a series of information exchanges with direct competitors that ultimately made consumers less likely to be able to watch their hometown team,” Deputy Assistant Attorney General Jonathan Sallet said in a statement.
“Competition, not collusion, best serves consumers and that is especially true when, as with pay-television providers, consumers have only a handful of choices in the marketplace.”
SportsNet LA is currently not carried by DirecTV, Cox or AT&T.