Second Circuit – Anticompetitive policy: Cumulus Media New Holdings Inc. v. The Nielsen Co. (US) LLC

United States Court of Appeals for the Second Circuit

Anticompetitive policy — Preliminary injunction

Cumulus Media New Holdings Inc. v. The Nielsen Co. (US) LLC

26-88

Judges Perez, Nathan, and Katzmann

Background: Plaintiff sued the defendant arguing that its new policy, which prohibits audio networks from purchasing the defendant’s national data report unless they also agree to purchase local data products in all markets, violates the Sherman Act as an anticompetitive tying arrangement. The defendant appealed from the grant of a preliminary injunction.

Ruling: The Second Circuit affirmed. The court held that there was no abuse of discretion to grant the preliminary injunction. The district court noted that the policy unlawfully tied its local data products to its national data product, used its monopoly power in the national data market to force the plaintiff into purchasing unwanted local data products, and distorted competition in local data markets by fencing out competitors.

James A. Hunter for the plaintiff-appellant; Douglas A. Rappaport, of Akin Gump Strauss Hauer & Feld, for the defendants-appellees.

Oral argument audio