Justice Department investigating NFL over games on paid platforms, sources say

The National Football League is currently under investigation by the federal government for its licensing practices that are believed to harm consumers. According to sources, the NFL has been licensing games to multiple platforms simultaneously, including paid streaming platforms and paid cable networks. This has raised concerns about affordability for consumers and the need to create a level playing field for providers.

The investigation, first reported by the Wall Street Journal, is focused on ensuring that consumers have access to NFL games in an affordable and fair manner. The NFL, however, has defended its media distribution model, highlighting that 87% of its games are available on broadcast television, with all games in the markets of the competing teams being broadcasted.

Despite the NFL’s claims, the investigation comes at a critical time as the league is in negotiations with Paramount Skydance, the parent company of CBS News, for broadcasting rights. The NFL is reportedly seeking an additional $1 billion per season from Paramount Skydance to continue broadcasting games through the 2033-34 season. This move has raised concerns among broadcasters, particularly Fox, who fear that spreading games across multiple streaming services could make watching games expensive and confusing for fans.

In a recent editorial, the Wall Street Journal argued that the NFL’s distribution model might be in violation of its antitrust exemptions by spreading content across various platforms. Republican Sen. Mike Lee, chair of the Senate Judiciary Committee’s Subcommittee on Antitrust, Competition Policy, and Consumer Rights, expressed support for the investigation, highlighting the need to ensure consumer access to NFL games.

The investigation raises questions about the Sports Broadcasting Act of 1961, which granted the NFL limited antitrust immunity to collectively license games to national broadcast networks. Sen. Lee emphasized that if game packages are placed behind subscription paywalls, it may no longer align with the consumer-access rationale underlying the antitrust exemption.

As the investigation unfolds, it remains to be seen how the NFL will navigate its licensing practices to ensure fair access to games for all fans. Stay tuned for updates on this developing story.