FCC Prohibits Enforcement of Cable Operators' Exclusive Access Clauses for Multiple Dwelling Units
The Federal Communications Commission has issued a Report and Order prohibiting cable operators from enforcing or executing any provision in a contract that grants an operator the exclusive right to provide cable services to apartment buildings, condominiums and certain other multiple dwelling units (MDUs) in an effort to bring the benefits of competition to the increasing number of residents living in MDUs. The FCC found that cable operators’ use of exclusivity clauses in MDU cable service contracts constitutes “an unfair method of competition or an unfair act or practice” proscribed by the federal Communications Act.
According to the FCC, approximately 30 percent of Americans live in MDUs. It also found that the harms of exclusivity clauses had a greater impact on minorities, a greater percentage of which live in MDUs compared to the general population. The FCC will consider whether other arrangements, which have the same practical effect as exclusive access clauses, should likewise be prohibited. A copy of the FCC’s Report and Order, and Further Notice of Proposed Rulemaking is available at the following link: http://hraunfoss.fcc.gov/edocs_public/attachmatch/FCC-07-189A1.pdf