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DOJ settles antirust lawsuit against cable companies who don’t carry Dodgers games

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Last November, the U.S. Department of Justice sued AT&T, accusing its subsidiary, DirecTV, of being the ringleader in a plot in which it conspired with Cox Communications, Charter Communications and AT&T cable (then a separate company), to refuse to carry SportsNet LA, the Dodger-owned TV channel in violation of antitrust laws.

Now that lawsuit is over. The DOJ settled with AT&T last night.

The bad news: no part of the settlement obligates DirecTV or any of the other alleged co-conspirators to carry Dodgers games or to even negotiate to that end. There is likewise no fine or truly substantive penalty. It’s basically a “do not do this again!” agreement with some antitrust training requirements for executives and some orders to monitor their communications about these things.

“We are pleased to have resolved this matter to the satisfaction of all parties,” an AT&T spokesman said yesterday, likely in the tone of a guy who is pretty happy to have had a major antitrust suit against him settled so quickly.

When the suit was filed, I anticipated a settlement, as most antitrust suits brought by the DOJ are settled. Such a settlement could’ve featured a cash penalty or, more significantly, a brokered agreement between the parties in question in lieu of a cash settlement that could’ve led to Dodgers games being carried on more channels. After all, more competition is the end game of the Antirust Division.

As it is, however, it’s hard to see this as anything other than a surrender by the DOJ and a victory for the those carriers who coordinated their efforts to not carry the Dodgers.

An open question, unanswered in anyone’s statements yesterday, is whether this settlement is 100% about the merits of the case — keeping in mind that the DOJ tends not to file antitrust suits unless they think they can win, instead preferring to negotiate first — or whether it represents a new set of laxer priorities when it comes to antitrust enforcement from the Trump Administration and AG Jeff Sessions.

Rockies acquire Zac Rosscup from Cubs

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The Rockies announced a minor swap of relief pitchers on Monday evening. The Cubs sent lefty Zac Rosscup to the Rockies in exchange for right-hander Matt Carasiti.

Rosscup, 29, was designated for assignment by the Cubs last Thursday. He spent only two-thirds of an inning in the majors this year and has a 5.32 career ERA across 47 1/3 innings. Rosscup has spent most of the season with Triple-A Iowa, posting a 2.60 ERA in 27 2/3 innings.

Carasiti, 25, spent 15 2/3 innings in the majors last year, putting up an ugly 9.19 ERA. With Triple-A Albuquerque this season, he compiled a 2.37 ERA and a 43/13 K/BB ratio in 30 1/3 innings.

U.S. Court of Appeals affirms ruling that the minor leagues are exempt from federal antitrust law

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The Associated Press reported that on Monday, the U.S. Court of Appeals for the 9th Circuit affirmed a district court ruling which holds that the minor leagues are exempt from federal antitrust law, just like the major leagues.

In 2015, four minor leaguers sued Major League Baseball, alleging that MLB violated antitrust laws with its hiring and employment policies. They accused MLB of “restrain[ing] horizontal competition between and among” franchises and “artificially and illegally depressing” the salaries of minor league players.

The U.S. Court of Appeals said the players failed to state an antitrust claim, as the Curt Flood Act of 1998 exempted Minor League Baseball explicitly from antitrust laws.

This case is separate from the Aaron Senne case in which Major League Baseball is accused of violating the Fair Labor Standards Act. That case was recertified as a class action lawsuit in March. In December, Major League Baseball established a political action committee (PAC), which came months after two members of Congress sought to change language in the FLSA so that minor league players could continue to be paid substandard wages.