Comcast Heads to Trial in Case Alleging Monopolization

A 2003 consumers’ $875 million antitrust lawsuit against cable-service operator Comcast is headed for trial after a federal judge in Philadelphia upheld some of the claims. U.S. District Judge John Padova said allegations that Comcast targeted discounts for potential new customers may go to trial, while claims including blocking access to some contractors won’t.

“Because it possessed market power, its decision to target promotional discounts to deter a new entrant may be deemed predatory and an exercise of market power to maintain its monopoly,” Judge Padova wrote of Comcast in his pre-trial opinion. The judge also found “that Comcast has stated a legitimate procompetitive justification for its conduct with regard to cable infrastructure installation contractors.” The lawsuit was filed by customers who contended the Philadelphia-based company wrongly “entered into agreements with its competitors to allocate the nation’s regional cable markets amongst themselves” and “used its monopoly power to raise cable prices to artificially high, supra-competitive levels,” according to Judge Padova’s ruling.