Appeals Court Sides with Cumulus in Suit Against Nielsen

The United States Court of Appeals for the Second Circuit rules in favor of Cumulus Media in this latest aspect of the company’s anti-trust suit against Nielsen. The ruling keeps the preliminary injunction preventing Nielsen from forcing national radio audience clients from having to buy local market data as well in effect while the case returns to district court. The appellate court held that constructive tying – where pricing effectively conditions the purchase of one product on another – can violate the Sherman Act. The ruling affirmed the district court’s findings regarding coercion, anticompetitive effects, irreparable harm, and the tailored injunction, and held that Cumulus’ current bankruptcy did not require a stay of the appeal. In 2024, Nielsen instituted a policy requiring national broadcasters to purchase its local data in every market where they operate in order to access the full national report. This policy forced Cumulus’ Westwood One to choose between buying all local data from the firm or losing access to the essential national data product. Cumulus is suing Nielsen United States District Court for the Southern District of New York, alleging that the Nielsen’s policy constitutes an unlawful tying arrangement. The district court found that Nielsen used its monopoly power in the national data market to coerce customers into buying local data products, resulting in anticompetitive effects in local markets by excluding competitors.