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West Virginia AG Sues Comcast For Bundling

By Michael Klurfeld on July 7, 2009

comcast_logoWest Virginia’s attorney general is suing Comcast on the grounds that its practices of requiring customers to pay the company for their cable boxes is bundling and thus violates a few West Virginian antitrust laws. The suit itself is directed at Comcast and its various subsidiaries (Comcast Cable Communications, Comcast Holdings Corporation, etc), but is itself applicable to a lot of cable companies out there as most of the cable providers require customers to purchase cable boxes through them. This undermines the consumer’s ability to go out and buy a cheaper cable box, which he could then use on any cable service.

Where Comcast really stands out as taking the low road is in its practice of not actually selling a cable box to customers, but instead forcing customers to rent the devices. So over the course of the years and years that Joe Shmoe is getting cable service, he’s paying the rent on a box that he could buy for substantially less than Comcast is collecting.

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  1. This is interesting. I wonder if they’ll decide to go after DirecTV, or possibly the satellite Internet providers next.

    With DirecTV, you’re required to lease a separate converter box for each television you want to use separately (you can hook more than one television up to the same box, but you then have to watch the same program on all of those televisions).

    With the satellite Internet providers, you are required to buy their satellite dish (for around $300 up front), and you have no other option if you want satellite Internet service (which, for many of us in West Virginia, is the only “high speed” option we have).

    I’ll have to keep an eye on this. Like the iPhone debate, I’m not sure how this is an anti-trust issue (after all, if you don’t want Comcast’s box, you can always go with DirecTV, Dish Network or a plain old antenna), but this could have serious implications if anything comes of it.

    The Comcast aspect doesn’t really matter to me, since cable service ends at my driveway, but it could be interesting if it does start to reach to other similar services.

  2. I was reading something else about this on another blog. Interesting. Your perspective on it is diametrically opposed to what I read earlier. I am still pondering over the diverse points of view, but I’m tipped to a great extent toward yours. And regardless, that’s what is so good about modern-day democracy and the marketplace of ideas on-line.

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