FOLLOW US

Comcast Corp. and Viamedia Inc. presented arguments Friday before an Illinois federal judge regarding a pivotal question: whether Comcast’s platform for connecting advertisers with spot cable providers operates as a one-sided or two-sided platform. The determination could significantly impact whether Viamedia’s antitrust claims proceed to trial, following a remand by the Seventh Circuit nearly five years ago.

Comcast’s Argument: A Two-Sided Market Framework

Comcast maintains that its interconnect services, which facilitate advertising transactions between cable companies and advertisers, function as a two-sided platform akin to the credit card networks analyzed in the Supreme Court's 2018 Ohio v. American Express (Amex) decision. Comcast argues that this framework supports its position under the Sherman Act.

Arthur Burke, an attorney for Comcast with Davis Polk & Wardwell LLP, argued that the company’s services create a "virtuous feedback loop," with increased participation on one side enhancing value for the other. He asserted that the Seventh Circuit’s earlier opinion aligns closely with the Amex ruling, even quoting key language from the Supreme Court decision.

“The Seventh Circuit clearly understood the parallels with Amex,” Burke said. “This is precisely the type of two-sided transaction platform the high court described.”

Viamedia’s Counter: Market Definition Is Irrelevant

Viamedia’s counsel, James Webster II of Kellogg Hansen Todd Figel & Frederick PLLC, countered that the two-sided market question is neither relevant nor necessary for the case to proceed. He argued that the Seventh Circuit had already determined Viamedia provided sufficient evidence for its monopolization claims to survive summary judgment, rendering Comcast’s framing moot.

“We’re here because the Seventh Circuit remanded this case for trial,” Webster stated. “Comcast’s attempt to reframe the market definition as two-sided is an attempt to relitigate issues that have already been decided.”

Webster also dismissed Comcast’s claims that Viamedia altered its market definition, calling such assertions “baseless” and asserting that Viamedia has consistently maintained its position throughout the litigation.

The Antitrust Claims at Stake

Viamedia’s lawsuit accuses Comcast of abusing monopoly power to dominate spot cable advertising sales in several markets. The dispute arose after Comcast declined to renew its contract with Viamedia in 2012, opting to use its own subsidiary, Comcast Spotlight, for ad sales.

The heart of the remaining claims involves allegations that Comcast tied its interconnect services—essential for purchasing spot cable ads—to its own ad-rep services, coercing cable distributors into exclusive agreements. Viamedia argues that this behavior constitutes unlawful tying under antitrust law.

Initially, the district court sided with Comcast, finding no anticompetitive conduct. However, the Seventh Circuit reversed parts of that ruling, allowing the monopolization claims to proceed. The Supreme Court declined to review the case.

The Duty-to-Deal Question and Its Removal

Earlier in the litigation, Viamedia pursued a controversial "duty-to-deal" claim, alleging that Comcast had a legal obligation to work with its competitors. While U.S. antitrust law generally does not require companies to do business with rivals, certain exceptions exist. Viamedia later dropped this claim, focusing instead on its tying and monopolization allegations.

Judge Coleman’s Role and Potential Outcomes

U.S. District Judge Sharon Johnson Coleman faces the task of deciding whether Comcast’s platform should be analyzed as one-sided or two-sided and how that impacts Viamedia’s claims. She also must determine whether the evidence presented warrants sending the case to trial.

Judge Coleman signaled interest in balancing the Seventh Circuit’s instructions with Comcast’s arguments, noting that a ruling on the market definition could influence the broader context of the case.

Broader Implications

The case underscores ongoing debates about antitrust enforcement in the context of technology-driven platforms and complex market structures. A ruling in favor of Comcast could solidify the application of Amex to similar disputes, while a decision favoring Viamedia could pave the way for more aggressive antitrust challenges to platform-based business practices.