The Department of Justice weighed in on the high-stakes legal battle between Hollywood agencies and the Writers Guild of America on Tuesday, arguing that the guild cannot claim blanket exemption fr…
The Department of Justice weighed in on the high-stakes legal battle between Hollywood agencies and the Writers Guild of America on Tuesday, arguing that the guild cannot claim blanket exemption from federal antitrust law.
“The United States urges this Court to reject defendants’ argument that it can apply the labor exemptions from the antitrust laws in this case on the pleadings,” the DOJ stated., is involving itself in a Hollywood legal controversy for the second time in two weeks. Last week, Delrahim announced that he would seek to repeal the Paramount consent decrees, which have kept movie production divorced from exhibition for the last 70 years.
Three agencies — WME, CAA and UTA — filed a federal antitrust suit against the guild in June, accusing it of engaging in an illegal “group boycott.” The guild filed a motion to dismiss the lawsuit in October, arguing that its actions are exempt from antitrust law because it is acting as a union.“The Writers Guild’s motion to dismiss is premised on the notion that as a legitimate union its judgment about what is best for its members cannot be ‘second-guess[ed]’ by this Court,” the DOJ argued.
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