About | HeinOnline Law Journal Library | HeinOnline Law Journal Library | HeinOnline
LOG IN
LOG IN

4 Criterion J. on Innovation 1 (2019)

handle is hein.journals/critjinov4 and id is 1 raw text is: T H E C R I T E R 1 0 N JOURNAL ON INNOVATIO N VOL. 4 2019 Vertical Integration in Multichannel Television Markets: Revisiting Regional Sports Networks Using Updated Data Georgi Giozov,* Nauman Ilias,t Mark Israel', &Allan Shampine§ On November 20, 2017, the Antitrust Division of the U.S. Department of Justice (DOJ) sued in the U.S. District Court for the D.C. Circuit to enjoin the merger ofAT&T and Time Warner.' OnJune 12, 2018,Judge Richard Leon denied the DOJ's request to enjoin the AT&T-Time Warner merger.2 On appeal, a three-judge panel of the U.S. Court of Appeals for the D.C. Circuit unanimously affirmed Judge Leon's decision3 The DOJ reportedly shortly thereafter represented to the merging parties that it would not appeal.4 The DOJ built its case on a theoretical bargaining model that implied that a vertically integrated (with distributors) content owner would charge higher prices to rival distributors than would a non-vertically integrated content owner.5 Relatively little academic empirical work has been done on the subject. One of the few articles on the topic-Vertical Integration in Multichannel Television Networks: A Study of Regional Sports Networks by Kevin Caves, Chris Holt, and Hal Singer (to which we will refer in this article as the 2013 study)-was cited by one of the government's expert economic Senior Vice President, Compass Lexecon. Email: ggiozov@compasslexecon.com. t Senior Vice President, Compass Lexecon. Email: nilias@compasslexecon.com. Senior Managing Director, Compass Lexecon. Email: misrael@compasslexecon.com. § Executive Vice President, Compass Lexecon. Email: ashampine@compasslexecon.com. The authors were engaged by AT&T during the AT&T/Time Warner merger investigation and trial. We thank two anonymous referees for valuable comments. The views expressed here are entirely our own. Copyright 2019 by Georgi Giozov, Nauman Ilias, Mark Israel, and Allan Shampine. All rights reserved. 1 Complaint, United States v. AT&T, Inc., No. i:17-cv-O2511 (D.D.C. NOV 28, 2017), https://www.justice.gov/atr/case-document/file/ioI29i6/download. 2 United States v AT&T, Inc., 310 F. Supp. 3d 161 (D.D.C. 2018). 3 United States v AT&T, Inc., No. 18-5214, 2019 WL 921544 (D.C. Cir. Feb. 26, 2019). 4 See Brent Kendall, US. Appeals Court Rejects Justice DepartmentAntitrust Challenge toAT&T-Time Warner Deal, WALL ST.J., Feb. 26, 2019, https://www.wsj.com/articles/u-s-appeals-court-rejects-justice-department- antitrust-challenge-to-at-t-time-warner-deal-i551194524- s See Expert Report of Carl Shapiro, United States v. AT&T, Inc., No. I:17-cv-O2511 (D.D.C. Feb. 2, 2018), https://www.justice.gov/atr/case-document/file/io81336/download. I

What Is HeinOnline?

HeinOnline is a subscription-based resource containing thousands of academic and legal journals from inception; complete coverage of government documents such as U.S. Statutes at Large, U.S. Code, Federal Register, Code of Federal Regulations, U.S. Reports, and much more. Documents are image-based, fully searchable PDFs with the authority of print combined with the accessibility of a user-friendly and powerful database. For more information, request a quote or trial for your organization below.



Short-term subscription options include 24 hours, 48 hours, or 1 week to HeinOnline.

Purchase Access

Contact us for annual subscription options:

Contact Us

Already a HeinOnline Subscriber?

Log In

profiles profiles most