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TV Stations in L.A. Under Investigation

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From Bloomberg Business News

The Justice Department said it is investigating whether some Los Angeles-area television stations violated antitrust laws by limiting competition for advertising.

The antitrust probe concerns “competition for advertising among certain television stations in the Los Angeles area,” said Gina Talamona, spokeswoman for the department’s antitrust division.

She would not provide further details.

The Justice Department is trying to determine whether some of the 11 stations in the area shared information that could lead to price fixing, said an executive of a firm that sells advertising time for some stations.

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The executive said he received a request for documents from the Justice Department two days ago.

The major television stations in the market are KTTV, owned by News Corp.’s Fox Broadcasting; KCAL, owned by Walt Disney Co.; KABC, part of Disney’s ABC unit; KNBC, owned by General Electric Co.’s NBC; KTLA, owned by Tribune Co.; KCBS, owned by Westinghouse Electric Co.’s CBS division; and Chris-Craft Industries Inc.’s KCOP.

“We received a request and we are responding to it,” said Charles Sennet, senior counsel for Tribune Co. He said the Justice Department asked for documents about station operations but didn’t say what the probe was about other than that it was a civil procedure.

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CBS and ABC representatives would not comment. Spokespersons for the other stations could not be reached for comment.

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