Exclusive Contracts Banned By Fcc

A U.S. Appeals Court found that the FCC’s (Federal Communications Commision) prior order banning exclusive contracts for video services in multi-unit dwellings will be upheld.

According to the FCC the exclusive contracts have an anti-competitive effect on the cable market. It found that exclusive agreements “raise prices, limit access to certain programming, and delay deployment of fiber optic and broadband technologies.” Order, 22 F.C.C.R. at 20, 243-51.

Associations cannot enter into exclusive contracts with specific providers of these services as a result of this finding.

National Cable & Telecommunications Assn. v. Federal Communciations Commission, No. 08-1016, 08-1017, US App. Ct. Columbita Circuit, May 26, 2009.

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