Complaint, Cablevision Sys. Corp. V. Viacom Int'l
Case 1:13-cv-01278-LTS Document 9 Filed 03/07/13 Page 1 of 60 UNITED STATES DISTRICT COURT SOUTHERN DISTRICT OF NEW YORK ) CABLEVISION SYSTEMS CORPORATION ) and CSC HOLDINGS, LLC, ) ) Civil Action No. 13 CIV 1278 (LTS) Plaintiffs, ) (JLC) -against- ) ) COMPLAINT VIACOM INTERNATIONAL INC. and BLACK ) ENTERTAINMENT TELEVISION LLC, ) REDACTED PUBLIC VERSION ) Defendants. ) ) Plaintiffs Cablevision Systems Corporation and CSC Holdings, LLC (collectively, “Cablevision”), by their attorneys Ropes & Gray LLP, bring this Complaint against Viacom International Inc. and Black Entertainment Television LLC (collectively, “Viacom”) for violations of federal and state antitrust laws, and allege as follows: NATURE OF THE ACTION 1. This case involves Viacom’s abuse of its market power over access to commercially critical networks – its highly popular Nickelodeon, Comedy Central, BET, and MTV networks – to force Cablevision to license and distribute over scarce bandwidth some dozen other Viacom networks, which Viacom calls Suite Networks, that many Cablevision subscribers do not watch and for which Cablevision would prefer to substitute competing networks. Viacom strong-armed Cablevision into carrying Suite Networks by threatening to impose a near $ billion penalty if Cablevision licensed only the Viacom networks Cablevision wanted, networks Viacom calls its Core Networks. Stated differently, unless Cablevision agreed to distribute Viacom’s Suite, Cablevision would pay nearly as much for just the Core (which includes commercially critical networks) than for the Core and Suite 1 Case 1:13-cv-01278-LTS Document 9 Filed 03/07/13 Page 2 of 60 combined. Viacom’s diabolical and coercive scheme, which harms competition, consumers, and Cablevision, constitutes tying and block booking in violation of the Sherman Act and New York law.
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