What Is Mlb Antitrust Law?

The Sherman Antitrust Exemption

The exemption from the Sherman Antitrust Act was granted by an appeals court in 1922 and then unanimously affirmed by the Supreme Court in 1996. The baseball exemption is the most well-known antitrust exemption. Major League Baseball has long enjoyed total immunity from antitrust law.

The Federal Baseball Club of Baltimore, Inc. made a landmark 1922 decision. Antitrust laws are created by governments to protect consumers from predatory business practices. Market allocation, bid rigging, price fixing, and monopolies are some of the questionable business activities that are subject to antitrust laws.

The Antitrust Division of the Department of Justice brings criminal and civil antitrust actions. The Federal Trade Commission has civil enforcement actions. Private parties bring lawsuits asserting damage claims.

Baseball is Not Exempt

Any business that operates across state borders is subject to antitrust legislation. The Sherman and Clayton acts may be used to determine if attempts to control trade and monopolize are illegal. Baseball is the only sport that has an exemption to the extent that it does, because of the exemption and decades of reluctance of various courts to overrule.

If the exemption is repealed, teams can file a lawsuit. Major League Baseball might still charge a relocation fee, either to compensate another owner in a nearby market or to compensate the league for moving into a potential expansion market. Bud Selig said baseball will open its books at the hearing to show Congress that the game is in bad shape and needs to be kept exempt.

Baseball could go forward with contraction without antitrust challenge. It's not going to happen in the next few months. Congress might speed up the process if the Minnesota Court of Appeals can't stop contraction.

The Baseball Exemption to Antitrust Laws

The exemption from the Sherman Antitrust Act protects baseball activities from being subject to antitrust laws, but the validity of the exemption is questionable. The settlement in Garber suggests that MLB broadcasting is an interstate commerce and that it is a restraint of trade in violation of federal antitrust law. There is a

The settlement suggests that the judicial evaluation of the baseball exemption may be difficult. The antitrust exemption should not be enforced in order to protect the business of MLB from a surge of illegal internet streaming. The baseball exemption to antitrust law is nearly a century old and is becoming outdated as the business of baseball grows to encompass more than simple state affairs.

Baseball has grown its business through a number of different means since the exemption was created, including merchandising deals, trading of players, and broadcasts that can reach a national audience. The game is not only about the game but about interstate commerce. The exemption is still valid and used by Major League Baseball despite the fact that it has been criticized.

Through its antitrust exemption, MLB has created anti-competitive contracts that give local cable networks an exclusive license to broadcast regional games, thus creating blackout restrictions that prohibit local fans from viewing games in any manner other than through an expensive cable television subscription. The baseball exemption should be reconsidered to curb the effects of piracy. The League should at least consider abandoning its restrictions on airing games in the dark to adapt to a change in viewing habits.

Antitrust Laws and the Competition Problem

The antitrust law is meant to make sure that no single company or group of companies can distort the free, competitive market. Most antitrust enforcement is similar. Civil or criminal charges can be brought against companies or individuals for abusive practices, or mergers can be subject to review to see if they can be avoided.

A poorly planned merger could result in the Justice Department tying up the deal in court for years. A federal judge might block the merger or even order it undone. It can be disastrous for a company to have that happen, and it can cost a lot of money in legal bills along the way.