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A federal judge rejected Viacom’s motion to dismiss an antitrust lawsuit filed by Cablevision, which is trying to end Viacom’s practice of imposing a financial “penalty” on companies that try to distribute its most popular channels without also licensing its less desirable ones.
Cablevision has “pleaded facts sufficient to support plausibly an inference of anticompetitive effects,” US District Judge Laura Taylor Swain wrote Friday (PDF). Cablevision filed the lawsuit in February 2013 in New York. Viacom argued in its motion for dismissal that, among other things, Cablevision failed to allege anticompetitive effects but was unable to convince the judge.
Swain described the case as follows:
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