TNND — The Justice Department has reportedly launched an antitrust investigation into the NFL. The probe follows months of escalating warnings from FCC Chairman Brendan Carr, surrounding the league’s shift toward exclusive streaming deals.
DOJ reportedly probes NFL antitrust exemption as games shift to costly streaming bundles. (TNND)
People have to sign up for Netflix and Hulu and YouTube and Google. It’s very, very difficult these days,” Carr told Fox & Friends March 29th.
In that interview, Carr called out the NFL for becoming too expensive to watch and put the league on notice, warning that splitting games across streaming apps might invalidate their legal protections.
Some of these league’s are at a tipping point where they’re going to push this issue so far, that they start to lose their antitrust exemption,” said Carr.
Under the Sports Broadcasting Act of 1961, the NFL can use a special exemption allowing teams to negotiate TV deals collectively. But Carr argues that exemption was intended for free, over the air TV, not paid services like Netflix, Amazon Prime and Peacock.
We’re at a tipping point where these league’s can push it so far, putting games behind paywalls, that they undermine their ability to claim that antitrust exemption,” Carr said.
Ten days after that interview, an investigation has reportedly been opened by the DOJ. Specifically into the NFL’s alleged abuse of those antitrust exemptions. Affordability, with estimates showing fans could pay up to $1,500 in order to watch every game across multiple platforms. Anticompetitive tactics and it’s impact on local media.
I think it’s appropriate for the FCC and perhaps other components of the federal government to take a look and make sure that consumers are continuing to benefit,” Carr told Sinclair’s WCTI Thursday while climbing a 2,000 foot broadcast tower which serves the station.
During that conversation, the FCC Chairman also reiterated his stance that the shift of NFL games to streaming services creates a real threat to local broadcast TV.
If as a country, we care about continuing to have good local news and reporting, I think it’s important that we keep a lot of these NFL games on broadcast TV,” said Carr.Comment with Bubbles
BE THE FIRST TO COMMENT
The reported investigation also comes just over a month after Sen. Mike Lee (R-UT) sent a letter to the DOJ & FTC, urging officials to review the NFL’s broadcast practices. Specifically its use of the antitrust exemption. Meanwhile, the NFL has argued streamers have started to replace broadcasters and they need to meet viewers where they are.