Justice Department Opens Investigation Into NFL Over Anticompetitive Tactics That Harm Consumers | Report
The Justice Department has opened an investigation into the NFL. According to the Wall Street Journal, the investigation accuses the league of engaging in anticompetitive tactics that have harmed consumers.
It all comes back to the Sports Broadcasting Act of 1961. That act changed antitrust laws to allow professional sports teams to pool their broadcasting rights and sign league-exclusive contracts. It also limited the days, times and locations where pro football games could be played. It’s a law that made sense in the ’60s when there were three broadcast networks, but the streaming era means there are more options than ever to air games. And as we’ve seen throughout the years, more options often mean bigger bidding wars, more money for the NFL and more frustration from fans who just want to watch their team.
This investigation isn’t exactly a shock. Back in February, the Federal Communications Commission sought public comment about how the NFL’s current packaging system has impacted viewers. Then, last month, Chair of the Senate Judiciary Subcommittee on Antitrust, Competition Policy and Consumer Rights Mike Lee sent a letter to the Justice Department and Federal Trade Commission. In that letter he called for a review of the antitrust exception that the league currently holds.
“To watch every NFL game during this past season, football fans spent almost $1,000 on cable and streaming subscriptions. In practice, this requires subscribing to multiple streaming services and maintaining high-speed internet in addition to a traditional cable or satellite bundle,” Lee wrote. “The resulting fragmentation has produced consumer confusion and increasing costs for viewers attempting to watch their teams.”
Representatives for the NFL did not immediately respond to TheWrap’s request for comment.
News of this investigation comes after NFL and CBS began talks on a renewal deal in March. That deal could lead to a 50% increase for CBS, which could cost the network $1 billion more a year. CBS currently pays about $2.1 billion a year for NFL rights, according to CNBC. If CBS agrees to that price hike, the NFL would eliminate the opt-out clause of the contract after the 2029-30 season. A clause that allows the league to walk away has been part of the deal between CBS and the NFL since the two entities signed an 11-year agreement. That deal will run through the 2034 season.
The Wall Street Journal was the first to report this story.
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