Cablevision (NYSE:CVC) has filed a federal antitrust lawsuit against Viacom (NYSE:VIA), contending that Viacom is illegally forcing Cablevision to carry and pay for 14 unpopular ancillary networks in order to get a few "must have" networks. Cablevision's suit contends that:
- Viacom abused its market power over commercially critical networks, including networks such as Nickelodeon, Comedy Central, and MTV, to coerce Cablevision into carrying 14 far less popular ancillary channels.
- Viacom coerced Cablevision by threatening to impose massive financial penalties unless Cablevision complied with Viacom's demands.
- Viacom's conduct harms Cablevision and its customers, and impairs competition by making Cablevision pay for and carry networks that many subscribers do not want to watch, while other networks are excluded from distribution, preventing Cablevision from being able to differentiate its services and harming subscribers.