Judge orders Comcast trial in antitrust complaint
PhillyDeals: Cable subscribers will get a jury trial on whether Comcast overcharged up to $875 million.
Judge orders Comcast trial in antitrust complaint
Joseph N. DiStefano
Philadelphia-area cable TV customers' nine-year-old Sherman Act complaint that Comcast's monopoly power kept competition out of the market and allowed it to overcharge consumers can go to trial, federal Judge John R. Padova Jr. ruled yesterday, after striking several arguments he said weren't supported by enough facts. "The decision says, in short, that cable subscribers in the Philadelphia area will get a jury trial on whether Comcast overcharged for cable services," lawyer Barry Barnett of Texas-based Susman Godfrey LLP, told me. "We are gratified at the court's ruling dismissing some of the claims and limiting the remaining claims, and we look forward to defending the smaller claims that remain and obtaining a favorable ruling on those," said Sheron Korpus, a partner at Kasowitz, Benson, Torres & Friedman LLP, which defended Comcast.
According to Padova's memorandum supporting his ruling, lawyers for the consumers "presented evidence from which a jury could find that Comcast had monopoly power" because of the way it bought Philadelphia-area cable firms that had previously competed with it for local service franchises, reducing competition; that Comcast may have "acted with predation" illegal under the Sherman Antitrust Act when it targeted special discounts to customers of rival cable provider RCN in hopes of driving the company out of the market; and that Comcast's conduct stopped RCN from expanding and offering more customers competitive service. But Padova also told consumer attorneys to drop other claims they had hoped to use at trial, including the argument that Comcast broke the law simply by buying up competing local companies, since Comcast could show the combinations created "efficiencies" and made it easier to improve services; he also disallowed the claim Comcast wrongly stopped contractors from working for RCN, since RCN was able to find other contractors. Padova's 72-page decision referenced testimony from top Comcast executives Brian L. Roberts and Steven Burke, along with lower-ranking managers, contractors and economic experts for both sides. Plaintiffs have estimated overcharges at $875 million, a figure Comcast disputes. Similar complaints were filed in Boston and Chicago. The Philadelphia case is Behrend v. Comcast, U.S. District Court for Eastern Pennsylvania 03-6604.
This is going to be another collossal waste of time and effort. This trial will take years, the lawyers will all get millions, and if Comcast loses or decides to settle the class of "wronged" indivduals will each get a check for like 10 bucks, or a voucher or two for a free PPV movie. And then they'll raise our rates again to make up for the money they had to pay out.
— Michael S.- When I had Greater Media, all was fine. As soon as CONcast came along, then the problems came in tidal waves. So glad I dropped that disservice 8yrs ago and haven't looked back. I knew they weren't on the up and up.— PhilMar
- I have worked for nearly 2 decades as a telecom regulatory attorney. Having just read the District Court's opinion linked above, I can tell you that it makes little or no sense. Essentially, the judge seems to have prejudged the outcome, and he essentially ignores the facts of why cable companies clustered their territories, in favor of reaching his desired conclusion. Think what one may about cable prices being too high, but the legal opinions in this memorandum won't stand the test of ultimate appeal.— Seaner
- I'll pitch in for anything that will injure Comcast and their monopoly of the cable industry. Their customer service is below abysmal. If I had a dollar for every time their service reps lied to me I could retire in splendor. I am convinced that on rate questions, their service people are instructed to deliberately confuse the customer to the point that one will pay what Comcast asks for just for some peace of mind.— richw38
- I dont know what you guys pay Comshaft in Philly but her in the burbs we pay them $244/mth for internet, cable and phone. BUT if you are a new customer they are stealing from Verizon then they will charge you $125 for the same service. I hate both of them, they play you back and forth and in the end one will win because you, the consumer, will get sick and tired of playing the game and eventually give up.— Linda Petersen
- Dear Clueless: You can alway drop your Cable and Phone service and go without. It beats being a chump everytime. You are the problem --you keep bending over and exposing yourself to this BS.— A. Martinez
- Guilty...— ClarkU
- Its about time someone is finally taking these cable companies to task...they are nothing but pigs!!! People don't realize that cable companies do not pay any local taxes and/or business privilege taxes. Its such a shame that the companies making the most money are not subject to taxes, like all other business MUST. They hide behind a "public utility" label so they don't have to pay taxes. NOT FAIR TO ANYONE WHO PAYS TAXES...NOT FAIR AT ALL!!!— miss maggie
- ... How about making them pay taxes, too?— jerkoftheworld
- All I'd like to see is David Cohen, Rendell's henchman, in a striped prison jumpsuit. Please if there is a God let this happen.— ephraim
- ... that... roberts... so sick of having my wallet raped every month so he can line his and his cronies pockets. just received notice that my bill is going up $42 a month... you'd think they'd take care of the people who have been with them for 8-9 yrs. just sick of it. i thought the oil companies were corrupt but they can't touch this bunch of weasels. ...— FBO4ever
Gents and Ladies, did you know that all newer tv's nowadays can get basic cable, including digital,(not the premium "scrambled" channels)without the need for a cable box? But Comcast will NOT give you basic cable (or even digital)service without one? That's any where between $10-$15 dollars a month. Now multiply by millions of customers. Enough said.- And where is the CSN Philly/DirectTV suit??? CSN was supposed to be on the satellite years ago.— RonC1
- Ths first cable company in South Philly wasn't greater Media, but Time Warner. Greater Meadi bought it at the same time the rest of the city got cable. Previously only south Philly west of Broad had cable. That was all thank you to Mayor Rizzo.— jerseyman
