Antitrust Video Competition Improvement Act of 1998

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Antitrust Video Competition 
Improvement Act of 1998''.

SEC. 2. ANTICOMPETITIVE EXCLUSIVE CONTRACTS BY MULTICHANNEL VIDEO 
              PROGRAMMING DISTRIBUTORS.

    In any civil action based on a claim arising under section 1, 2, or 
3 of the Sherman Act (15 U.S.C. 1, 2, 3), evidence that a multichannel 
video programming distributor that has market power in a particular 
market has acted by means of a contract that is exclusive with respect 
to that market, to prevent another multichannel video programming 
distributor that competes, has a franchise to compete, or is certified 
by the Federal Communications Commission to compete, in that market 
from obtaining particular video programming from any person shall be 
sufficient to establish a presumption of a violation of such section.

SEC. 3. ANTICOMPETITIVE DIFFERENTIAL CONTRACTS BY MULTICHANNEL VIDEO 
              PROGRAMMING DISTRIBUTORS.

    In any civil action based on a claim arising under section 1, 2, or 
3 of the Sherman Act (15 U.S.C. 1, 2, 3), evidence that a multichannel 
video programming distributor that has market power in a particular 
market has obtained particular video programming from any person on 
terms and conditions, other than terms justified by demonstrable cost 
differentials, that are more favorable than those offered by such 
person to another multichannel video programming distributor that 
competes, has a franchise to compete, or is certified by the Federal 
Communications Commission to compete, in that market shall be 
sufficient to establish a presumption of a violation of such section.

SEC. 4. DEFINITIONS.

    For the purposes of this Act:
            (1) Cable operator.--The term ``cable operator'' means any 
        person that--
                    (A) provides cable service over a cable system and 
                directly, or through 1 or more affiliates, owns a 
                significant interest in a cable system, or
                    (B) otherwise controls or is responsible for, 
                through any arrangement, the management and operation 
                of such a cable system.
            (2) Cable service.--The term ``cable service'' means--
                    (A) the 1-way transmission to subscribers of video 
                programming or other programming service, and
                    (B) subscriber interaction, if any, that is 
                required for the selection or use of such video 
                programming or such programming service.
            (3) Cable system.--The term ``cable system'' means a 
        facility, consisting of a set of closed transmission paths and 
        associated signal generation, reception, and control equipment, 
        that is designed to provide cable service that includes video 
        programming, and that is provided to multiple subscribers 
        within a community, but excludes--
                    (A) a facility that serves only to retransmit the 
                television signals of 1 or more television broadcast 
                stations,
                    (B) a facility that serves subscribers without 
                using any public right-of-way,
                    (C) a facility of a common carrier that is subject, 
                in whole or in part, to the provisions of title II of 
                the Communications Act of 1934 (47 U.S.C. 201-276), but 
                such facility shall be considered to be a cable system 
                (other than for purposes of section 621(c) of the 
                Communications Act of 1934 (47 U.S.C. 541(c)) to the 
                extent such facility is used in the transmission of 
                video programming directly to subscribers, unless the 
                extent of such use is solely to provide interactive on-
                demand services,
                    (D) an open video system that complies with section 
                653 of the Communications Act of 1934 (47 U.S.C. 573), 
                or
                    (E) any facilities of any electric utility used 
                solely for operating its electric utility systems.
            (4) Franchise.--The term ``franchise'' means an initial 
        authorization, or renewal thereof (including a renewal of an 
        authorization which has been granted subject to section 626 of 
        the Communications Act of 1934 (47 U.S.C. 546)), issued by a 
        franchising authority, whether such authorization is designated 
        as a franchise, permit, license, resolution, contract, 
        certificate, agreement, or otherwise, which authorizes the 
        construction or operation of a cable system.
            (5) Multichannel video programming distributor.--The term 
        ``multichannel video programming distributor'' means a person, 
        including a cable operator, a multichannel multipoint 
        distribution service, a direct broadcast satellite service, an 
        open video system, a multichannel television broadcaster, or a 
        television receive-only satellite program distributor, that 
        makes available for purchase, by subscribers or customers, 
        multiple channels of video programming.
            (6) Video programming.--The term ``video programming'' 
        means programming provided by, or generally considered 
        comparable to programming provided by, a television broadcast 
        station.

SEC. 5. EFFECTIVE DATE AND APPLICABILITY.

    This Act shall take effect on the date of the enactment of this 
Act, but shall not apply with respect to conduct occurring before such 
date.

Summary: Antitrust Video Competition Improvement Act of 1998 - Provides that it shall be sufficient evidence in a civil action to establish a presumption of a violation of section 1 (trusts in restraint of trade), 2 (monopolizing trade), or 3 (trusts in the Territories or the District of Columbia) of the Sherman Act that a multichannel video programming distributor (MVPD) with market power in a particular market has:  (1) acted by means of an exclusive contract to prevent a MVPD competitor in that market from obtaining particular video programming from any person; and (2) obtained particular video programming from any person on terms and conditions other than terms justified by demonstrable cost differentials that are more favorable than those offered by such person to another MVPD competitor.