Court Refuses to Dismiss Advertising Antitrust Suit

In Nexstar Broadcasting Inc. v. Granite Broadcasting Corp. et al., Northern District of Indiana Judge Robert L. Miller Jr. denied Granite Broadcasting Corp.’s motion to reconsider a denial of its motion to dismiss and a request to certify an interlocutory appeal.  In its suit, Nexstar accused Granite of restricting competition for local spot advertising in the Fort Wayne designated market area.  According to the complaint, after becoming an exclusive Fox affiliate and acquiring dominance in the Fort Wayne local spot advertising market, Granite was able to charge much higher prices for local advertising and restrain competition. 

Granite moved to dismiss the suit, arguing that the suit failed to state a claim and that it focused on Nexstar’s loss of the Fox affiliate contract, not on any illegal actions taken by Granite.  Judge Miller denied Granite’s motion to dismiss, holding that Nexstar had plausibly alleged a theory of antitrust injury related not just to Granite’s takeover of the Fox affiliation, but also to a broader range of older anti-competitive conduct.  Granite filed a motion for reconsideration and requested that the court certify an interlocutory appeal.  The court denied Granite’s motion and request, holding that Granite’s understanding of the ruling as being based solely on Nexstar’s loss of the Fox affiliate contract is incorrect, the case is more complex.  Furthermore, an interlocutory appeal of those issues would simply delay the course of litigation.

Post a Comment

Your email is never published nor shared. Required fields are marked *

*
*