Comcast Sued by Viamedia for Monopolization of ‘Spot’ Cable Ad Sales Market

Viamedia Inc. has filed a lawsuit against Comcast, alleging that the cable company violated antitrust law through its business practices in the $5 billion local cable advertising-sales market. Viamedia, which competes against Comcast in the business of local cable advertising, accused Comcast of outsize influence and business practices that are squeezing out firms like Viamedia and causing them financial harm. The suit was filed on May 23 in federal court in the Northern District of Illinois.

The US Justice Department has already been probing Comcast’s practices in the so-called “spot” cable ad sales business since late 2014. In November, the Justice Department had requested additional information from several companies in the market, including Comcast, for an investigation focused on “monopolization or attempted monopolization” in locations where Comcast offers service. Comcast said the advertising market is “robustly competitive” and local cable advertising only accounts for 7% of local ad sales because of competition with other media like radio and broadcast TV. “We are currently reviewing the suit and generally do not comment on pending litigation,” Comcast said. Viamedia is seeking damages of $225 million or more, according to the suit. The firm said it has lost potential investors and customers as a result of Comcast’s practices.