Home » Market and Competition in Pricing Strategy » Television stations that buy licenses to show movies are required by the movie distributor to purchase licenses to less popular films they don’t want in order to acquire licenses to feature films they want. How likely is it that this situation is a violation of antitrust legislation?

Television stations that buy licenses to show movies are required by the movie distributor to purchase licenses to less popular films they don’t want in order to acquire licenses to feature films they want. How likely is it that this situation is a violation of antitrust legislation?

This action is most likely a violation of the Robinson-Patman Act but not the Sherman Antitrust Act.

This action is most likely a violation of the Clayton Act.

This action is most likely a violation of the Sherman Antitrust Act but not the Clayton Act.

This action most likely isn’t an antitrust violation.

That’s right. In the case United States v. Loew’s Inc., courts found that by using its power as a large movie distributor to force television stations to purchase rights to inferior movies along with more desirable feature films, Loew’s had violated the Clayton Act.