article: 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.