DOJ Probes Sinclair, Other TV Stations for Ad Rate Collusion

The Justice Department's antitrust investigation of Sinclair Broadcast Group focused on potential collusion among local broadcasters on inflated pricing of advertisements and alleged communications between their ad sales teams, The Wall Street Journal reported Thursday.

The coordination of ad sales teams between Sinclair, Tribune Media, and other independent TV station owners potentially led to higher rates for TV commercials, a source told the Journal.

Media companies like Sinclair and Tribune, which had sought FCC approval of a merger, own dozens of local TV stations which broadcast major networks like ABC, CBS, Fox and NBC.

"It is our policy not to comment on a potential investigation," a Sinclair spokesman told the Journal. "It is our understanding that this is not specific to Sinclair but focuses on the larger broadcast industry."

The coordination between ad sales teams was uncovered by government officials during the FCC's evaluation of the Sinclair-Tribune merger, and it is unclear what potential penalties those involved might face, if any. 

Tribune Media declined to comment on the report, as did other broadcasters involved in the probe, including Nexstar Media Group, Tegna Inc., and Hearst, the Journal reported.

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