DOJ Settles With More Broadcasters Over Sharing Ad Pacing Data

Nexstar, Sinclair and Tribune. The new pact also involves the Cox-owned ad sales company CoxReps. The companies involved “agreed with other entities in many metropolitan areas across the United States to exchange revenue pacing information, and also engaged in the exchange of other forms of non-public sales information,” the release said. Pacing data compares a station’s revenue for a certain time period to the same time the previous year. By sharing that information, the broadcasters were “better able to anticipate whether their competitors were likely to raise, maintain, or lower spot advertising prices” which helped inform their pricing strategies, DOJ said. “The information exchanges harmed the competitive price-setting process in markets for the sale of spot advertisements.” Justice didn’t comment on the monthslong gap between the resolution of accusations against these five broadcasters and the previous seven, but the release refers to them as “new” defendants. The release also singles out Fox as helping DOJ reach an “expeditious resolution” of the matter. For seven years, the broadcasters must refrain from sharing competitively sensitive information, adopt “rigorous antitrust compliance and reporting measures,” and cooperate with DOJ’s “ongoing investigation,” the release said. CoxReps must also implement firewalls in markets where it represents more than one broadcast station. Cox has been cooperating with the DOJ in the investigation "over the last many months,” said a spokesperson. “We have agreed to a consent decree that is consistent with our current business standards at our TV stations and in the CoxReps business.” Scripps "disagrees with the DOJ’s allegations,” a spokesperson said. “We decided settling with them was our best option to remain focused on our business.” CBS, Fox and Tegna didn’t comment Tuesday. “The DOJ accuses more broadcasters, who endlessly tout how they serve their local communities, of engaging in practices which allowed the station owners to overcharge local businesses in their communities for ads,” said America's Communications Association Senior Vice President-Government Affairs Ross Lieberman in a pair of tweets. “If broadcasters really cared about localism, they wouldn’t rip off the the ad buyers in the markets they serve,” he said. The DOJ investigation into broadcaster ad data sharing arose out of its evaluation of the Sinclair/Tribune deal, DOJ officials said.