Comcast is being investigated by the U.S. Justice Department due to the company's alleged bullying of competitors.
As reported by the Wall Street Journal, Comcast's $5 billion cable advertising-sales market violates federal anti-trust law, according to a document reviewed by the Journal.
The document, known as a civil investigative demand, indicates that the U.S. department of Justice's antitrust division is probing whether the company's cable ad sales practices, in addition to its deals represent rival pay-TV provider's ad sales, are hindering competition.
With regards to the investigation, it is focused on "monopolization or attempted monopolization" of the so-called spot cable ad-sales business in locations where Comcast offers its service, according to the document. Moreover, the document also indicates the government is examining whether the cable provider's ad deals with pay-TV rivals are unlawful restraint of trade.
The United States Justice Department is also requesting an additional information from companies in the market, including Comcast, according to people who are expert with the case. The scope of the government's probe, which is still in its early stage, is not yet clear.
And in a related report by Reuters, Comcast said in a statement that the advertising market was "robustly competitive" and added, "We plan to cooperate fully with the Department of Justice's inquiry."
In a similar note by the Hollywood Reporter, during Comcast's regulatory review, rival pay-TV providers like CenturyLink came forward to complain how the company's ad sales representation firm Spotlight was dominating the independent providers.
Moreover, regulators were also told that Comcast was conditioning an MVPD's participation in its "interconnects" or local cooperatives serving the pay-TV providers, on an agreement to use Spotlight.
As noted, in light of the U.S. justice department's inquiry, the cable company in question is defending its arrangements with competitors as increasing efficiency and keeping costs down for advertisers.
According to the company's statement, "To better compete with local advertising platforms with significant scale, like a broadcaster or web app that can sell an entire geographic market, and to provide more and better choices to advertisers, MVPDs have long worked together through local interconnect arrangements to sell local advertising."
Comcast added that, "We believe these long-standing industry practices are good for advertisers and consumers, and we and other MVPDs are continuing to provide these important services to our clients."
And at the FCC, CenturyLink noted that there were certainly "pro-competitive" arguments for using regional interconnects, even ones setmup and administered by Comcast; however, those justifications did not excuse the exclusion of rival providers, who wishes to use independent ad sales representatives.
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