DIRECTV Asks Court of Appeals to Revive Nexstar Lawsuit

By Phillip Swann
The  TV Answer Man –Follow me on X.
Former editor of Satellite DIRECT magazine. Reported on DIRECTV for 30 years.

DIRECTV today asked the Second Circuit Court of Appeals to revive its lawsuit charging broadcaster Nexstar violated antitrust law by allegedly forcing roughly 30 local stations owned by two smaller broadcasting groups to demand high carriage rates and then remove their signals if DIRECTV did not comply.

The satcaster lost the stations, which are owned by Mission and White Knight but managed by Nexstar, in October 2022 when the companies could not reach new deals. The stations are still blacked out on the TV provider.

The DIRECTV lawsuit against Nexstar was dismissed in federal court last spring on grounds that it lacks the antitrust standing the TV provider asserted in the lawsuit. But Courthouse News Service reports that DIRECTV argued today before the Court of Appeals that it should be reinstated.

The U.S. Department of Justice gave DIRECTV a boost last summer when it said it supported DIRECTV’s call for reinstatement.

“DIRECTV’s ’s injury flows from the anticompetitive aspect of the conspiracy,” a DIRECTV attorney told the court today, according to Courthouse News Service. “Specifically, the defendant’s ability to set prices above a competitive level.”

However, the news service writes that the Second Circuit’s panel of judges seemed skeptical of DIRECTV’s claim because the TV provider never actually paid the higher fees because of the blackout.

It’s unclear when the Second Circuit’s appeals court will rule on DIRECTV’s motion. If DIRECTV is successful, and ultimately wins the case, it would likely provide leverage in its negotiations to return the Mission and White Knight stations to its lineup.

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The TV Answer Man is veteran journalist Phillip Swann who has covered the TV technology scene for more than three decades. He will report on the latest news and answer your questions regarding new devices and services that are changing the way you watch television. See the bio for Phillip Swann here.