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[BUSINESS] · United States · 2 sources

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Nielsen petitions Supreme Court over Cumulus antitrust dispute

Nielsen has petitioned the U.S. Supreme Court to review a federal appeals court ruling that upheld a preliminary injunction against its radio ratings pricing policy. The legal dispute stems from an antitrust lawsuit filed by Cumulus Media, which accuses Nielsen of using its dominance in national and local radio audience data to stifle competition.

The Second Circuit Court of Appeals previously affirmed an injunction, characterizing Nielsen’s pricing structure as an unlawful ‘constructive tie’ under Section 2 of the Sherman Act. The court reasoned that Nielsen’s standalone pricing for local ratings was so ‘exorbitant’ that broadcasters were effectively forced to purchase bundled national and local data packages.

In its petition for a writ of certiorari, Nielsen argues that it offered its products both bundled at a discount and on a standalone basis, with prices that were not below cost. The company is seeking a determination on whether a seller can be held liable for a constructive tie when the standalone price is deemed too high relative to a discounted bundle, even if the pricing does not fall below cost.

Entities

Cumulus Media · Nielsen · Second Circuit Court of Appeals · U.S. Supreme Court