Radio programmers and rights holders relying on unbiased audience data gained a critical legal victory as the U.S. Second Circuit Court of Appeals reinstated a preliminary injunction blocking Nielsen from enforcing its controversial national-local ratings tie. The ruling, issued July 13, confirms that the ratings giant likely violated antitrust law by leveraging its 100% monopoly over national radio data to force broadcasters into purchasing unwanted local market reports.
Restoring Market Access for Competitors
The appellate court agreed with the Southern District of New York that Nielsen’s 2024 Network Policy unlawfully conditioned access to “Nationwide,” the only national ratings report, on the mandatory purchase of local data in every market where a broadcaster operates. This practice effectively barred competitors like Eastlan from gaining scale, as the policy created a barrier to entry for smaller rivals unable to match Nielsen’s bundled pricing. Cumulus Media, which operates 395 stations and distributes content to over 9,500 affiliated outlets via Westwood One, sought to drop 76 local markets in favor of Eastlan but was blocked by Nielsen’s restrictive terms.
The injunction now bars Nielsen from enforcing the Network Policy and prohibits charging a “commercially unreasonable rate” for standalone Nationwide access. A safe harbor provision establishes that any rate at or below the highest 2026 rate Nielsen charges any broadcaster is presumptively reasonable. Before the injunction, Nielsen offered a standalone price for Westwood One that the district court found was at least 150% higher than what other networks paid and ten times Cumulus’s existing contract rate.
Bankruptcy Stay Clarified for Antitrust Claims
The ruling also resolved a procedural complication stemming from Cumulus’s Chapter 11 filing on March 10, clarifying that the bankruptcy’s automatic stay does not apply to the broadcaster’s antitrust claims against Nielsen. While Nielsen’s separate counterclaims remain stayed in district court, the Second Circuit confirmed that Cumulus’s primary lawsuit proceeds independently. Judges affirmed the district court’s finding of irreparable harm regarding Cumulus’s potential loss of customers and market share, though they rejected broader rationales that generalized consumer harm alone suffices for injunctive relief in private antitrust suits.
The case returns to the district court for further proceedings with the injunction remaining active, ensuring Nielsen cannot revert to its tying policy during the litigation. This decision prevents the ratings giant from continuing a pricing strategy the court labeled a “constructive tie” that forced broadcasters to pay $1.2 million more than necessary for combined data. Radio executives now face a landscape where standalone national data must be priced fairly, potentially lowering costs for stations seeking alternative local measurement sources.
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