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.
that the company is illegally leveraging its dominance over national and local radio audience data to stifle rivals and charge inflated prices. At the heart of the complaint is the charge that Nielsen is providing access to the national broadcast radio ratings only if the client spends a lot of extra money on the separate local ratings. Cumulus argues that Nielsen’s policy forces them to buy ratings in U.S. markets where it doesn’t operate stations in order to have the complete national ratings data. Vargas’ injunction orders Nielsen to cease conditioning national ratings access on local subscriptions during ongoing contract negotiations. It also bars Nielsen from charging a commercially unreasonable rate for its nationwide ratings when sold as a standalone product while the case proceeds.
compete effective in the Philadelphia market for six months after the official separation. This comes after Gargano announced his role as a content provider for AllCity Network’s new Philadelphia sports content platform PHLY and Beasley charged that Gargano was violating his deal with WPEN. According to the terms of the preliminary injunction, Gargano can’t do any work for AllCity that appears on PHLY; he may do a national podcast and radio show with Brian Baldinger but PHLY can’t promote it; he can’t divulge confidential information about Beasley practices and can’t solicit Beasley clients until 18 months after the date of the injunction.