Arguments about the video marketplace being more competitive than ever due to streaming services ignore the fundamental question of whether the AT&T TV Now virtual MVPD has been shown to be effective competition as laid out in the Communications Act, the Massachusetts Department of Telecommunications and Cable told the 1st U.S. Circuit Court of Appeals Thursday (in Pacer, docket 19-2282). It's challenging the FCC's effective competition order covering parts of the state and Hawaii (see 1912230063). The FCC's interpretation of the terms of the LEC test are contrary to the law, FCC rules and the plain text, MDTC said in the reply brief. The cost of broadband fits squarely into list of impediments that indicate a service doesn't satisfy the LEC test, it said. The FCC didn't comment.
Epic Games asked U.S. District Judge Edward Chen in San Francisco Monday for a temporary restraining order (in Pacer) preventing Apple from “delisting” Fortnite games from the App Store or rendering gameplay useless on any iOS device. Epic sued Thursday to break Apple’s alleged “monopolies” in app distribution and in-app payment processing (see 2008130048). It added a direct-payment option to Fortnite, alleging Apple retaliated by removing the franchise from the App Store. The iPhone maker subsequently threatened to terminate Epic’s membership in the Apple developer program in two weeks and deprive it of developer tools if it didn’t remove the direct-payment option, said Epic. Apple didn’t comment Tuesday.
Apple spiced up Apple Music, adding two live global radio offerings and redubbing its Beats 1 radio station Apple Music 1, it said Tuesday. New stations are Apple Music Country and Apple Music Hits, which features songs from the ‘80s, ‘90s and 2000s. Apple Music 1, streaming from studios in Los Angeles, New York, Nashville and London, offers pop culture conversation and artist-led programming.
Thursday’s Epic Games complaint alleging Apple unlawfully monopolizes app distribution and payment processing through the App Store (see 2008130048) “makes out multiple actionable antitrust claims” against the iPhone maker, reported Cowen Research Friday. If Apple moves to dismiss the complaint, “we would not expect the judge to grant it,” it said. The case was assigned to U.S. District Judge Edward Chen in San Francisco. A trial could take up to two years to resolve, though “we’re likely to get clues where the judge is headed before then,” said Cowen. Cravath Swaine, representing Epic in the complaint, is “possibly the best antitrust law firm in the country,” it said. The firm "just guided Qualcomm to its win over the FTC" (see 2008110065), it said. Its reputation "likely ensures the judge won't subtly downgrade Epic's allegations,” said Cowen. If Democrat Joe Biden wins the presidency, “it's possible Apple might consider settling rather than risk a Biden DOJ joining Epic's lawsuit and giving it additional credibility and momentum.” Apple didn’t comment Monday.
Confidential materials and documents submitted to the FCC as part of AMC's carriage complaint against AT&T (see 2008100048) will be subject to a protective order, the FCC Media Bureau said Monday in docket 20-254.
ViacomCBS will file applications with the FCC requesting consent for involuntary transfer of control of TV stations and Communications Act Title III licenses due to the death last week of company Chairman Emeritus Sumner Redstone (see 2008120039), said a company letter Thursday. Redstone held an indirect controlling interest in ViacomCBS, which in turn controlled the licenses involved, the media company said. The stations involved include Los Angeles' KCAL-TV and KCBS-TV, WBZ-TV Boston and numerous others.
Apple engages in “unfair and anti-competitive actions” to “unlawfully maintain” its monopolies in the multibillion dollar markets of iOS app distribution and in-app payment processing, alleged Epic Games Thursday in a 173-page complaint (in Pacer) in U.S. District Court in San Francisco. Epic isn’t seeking “monetary compensation” for the “injuries it has suffered,” nor is it seeking “favorable treatment for itself,” it said. It’s instead seeking “injunctive relief to allow fair competition in these two key markets that directly affect hundreds of millions of consumers and tens of thousands, if not more, of third-party app developers,” it said. Through its control over iOS, and using a “variety of unlawful contractual restrictions that it forces app developers to accept, Apple prevents iOS users from downloading any apps from any source other than Apple’s own storefront, the App Store,” said Epic. Epic added a direct payment system to its Fortnite franchise Thursday morning, giving players the option to continue making purchases using Apple’s payment processor or use Epic’s, said the complaint. Fortnite users on iOS, for the first time, “had a competitive alternative to Apple’s payment solution,” it said. “Rather than tolerate this healthy competition and compete on the merits of its offering, Apple responded by removing Fortnite from sale on the App Store.” Apple didn’t comment. Sony agreed last month to make a $250 million "strategic investment" for a minority interest in Epic (see 2007090044).
Apple didn’t respond Thursday to questions about reports it’s planning a series of offerings to beef up its services business that will let customers score lower prices by bundling subscriptions. Bloomberg reported on Thursday that Apple plans to launch bundles “as early as October,” alongside the next iPhone line, to encourage customers to subscribe to more Apple services. The family-oriented offerings, which would reportedly save customers $2-$5 a month, would include different tiers combining Apple Music and Apple TV+ with a step-up version adding gaming. Another tier would add Apple News+. A pricier bundle would tack on additional iCloud storage for files and photos, the report said.
Proposed changes to how the FCC measures whether a station is significantly viewed in a given market would disadvantage satellite MVPDs (see 2005150062), said AT&T and Dish in a call with Media Bureau Chief Michelle Carey Tuesday, according to an ex parte filing in docket 20-73. Direct broadcast satellite providers would be at a competitive disadvantage compared with cable when it comes to carrying significantly viewed stations because the proposal treats cable and satellite MVPDs differently, the filing said. If the proposed rules make it easy to remove stations from the significantly viewed list, there could also be “potential for disruption” to consumers, the filing said. The agency shouldn’t adopt the rule changes proposed in the "significantly viewed" NPRM, AT&T and Dish said.
Appellant Dish Network dropped part of its appeal of a U.S. District Court's denial of a motion for a preliminary injunction and dissolving a temporary restraining order against Cox Media Group (see 2007220077). The 7th U.S. Circuit Court of Appeals granted a Dish motion for partial voluntary dismissal (in Pacer, docket 20-2315) Wednesday. The appeal is now limited to reviewing the order denying the preliminary injunction, the court said. Dish is suing over alleged breach of retransmission consent terms.