FEDERAL COURT REJECTS CABLE COMPANIES, SUPPORTS FCC!
EXCLUSIVE CONTRACTS ARE PROHIBITED FOR CABLE COMPANIES, BOTH RETROACTIVE AND PROSPECTIVE.
SIGNIFICANT BENEFIT FOR PCOs!
To IMCC Members,
Legal Counsel, Bill Burhop, reviewed the lengthy and detailed court decision that was argued on April 17, 2009 and decided today, May 26, 2009 regarding the National Cable & Telecommunications Association (NCTA) v. Federal Communications Commission (FCC) in regard to Exclusive Service Contracts. NCTA and NMHC (National Multi Housing Council) lost on both issues.
The Court made it very clear that:
1.) The FCC acted within its statutory authority to adopt the regulation prohibiting Exclusive Service Contracts as used by franchised cable companies and other MVPDs covered by Section 628 of the Communications Act.
2.) Making the prohibition retroactive did not violate statutory law or legal precedent.
Therefore, the status quo continues as if the court challenges had never been raised.
Just keeping you up to speed on the latest news as we receive it! IMCC is your resource for regulatory information affecting our industry!