WME alleges WGA leading an illegal boycott in antitrust lawsuit
, presents the practice of packaging as an important way that shows and movies get made in the market. The agency asserts that the boycott is stifling competition and is a per se violation of Section 1 of the Sherman Antitrust Act.
The complaint continues, "To effectuate its boycott, WGA leaders have coerced their member-writers and showrunners into agreeing to refuse to deal with WME and other talent agencies who will not agree to stop packaging or affiliating with content companies by threatening these individuals with expulsion and other union discipline that would imperil their ability to work, and threatening their healthcare without a legitimate basis to do so.
The lawsuit further asserts that absolute bans on agency packaging and content affiliation are "grossly over-restrictive, unnecessary to redress any legitimate union concern, and intrude upon commercial activities in markets that WGA has no authority to regulate." Should the case not settle, the litigation is likely to focus on the extent to which unions can regulate agents as well as antitrust exemptions for union activity. In its action today, WME isn's suing any individual writers, merely going after the unit that collectively bargains on behalf of its members. That figures to gather courtroom attention as well.
In a statement in conjunction with the filing, a WME spokesperson said, "We took today’s step with careful consideration. The WGA negotiating committee has made it clear both through its legal action and unwillingness to negotiate that it was never interested in making a reasonable deal. We are now left to seek a legal remedy for this dispute.
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