The Week That Was in MLB Antitrust Litigation
Last week was relatively eventful for two pending antitrust lawsuits against Major League Baseball. On Thursday, the district court issued an important decision in the Garber v. Office of the Commissioner of Baseball suit challenging several of MLB’s television broadcasting practices under the Sherman Antitrust Act. Then later that same day, MLB officially asked the district court to dismiss the Miranda v. Office of the Commissioner of Baseball case, a suit contending that MLB’s minor league pay practices violate federal antitrust law.
Let’s start with the Garber case. As both Wendy Thurm and I have previously discussed on several occasions, the Garber suit involves allegations that several of MLB’s television policies violate the Sherman Act. First, the plaintiffs contend that MLB and its regional sports network partners impose unreasonable blackout policies on fans, preventing individual RSNs from competing with one another in each team’s assigned geographic territory. Absent these anticompetitive restrictions, the plaintiffs allege, a Red Sox fan living in California would, for instance, have the option of subscribing to the New England Sports Network (NESN) to watch all of Boston’s game. The resulting competition would, in theory, drive down the cost of sports programming for all baseball fans.
Relatedly, the Garber plaintiffs also accuse MLB of violating antitrust law by selling only league-wide, pay-per-view subscription packages (MLB Extra Innings and MLB.tv), rather than allowing individual teams to offer their own competing out-of-market plans. This restriction on competition also allegedly increases the cost that out-of-market fans pay to watch baseball.