By Roberta Rampton-OwensPublished February 18, 2019 11:22AMETHER, N.Y. (Reuters) – Time Warner, a Time Warner Communications Inc unit that owns CNN, MSNBC and Cartoon Network, agreed on Thursday to pay a $130 million fine to settle a federal antitrust lawsuit, the company said.
The agreement resolves a lawsuit brought by the Federal Trade Commission and five other companies that accused the cable giant of conspiring to price its broadband networks too low.
The settlement includes $70 million to be paid by Time Warner in cash and the ability to receive additional payments from other sources.
Time Warner said it would also pay $60 million to settle the antitrust claim brought by Tribune Media and two other news organizations.
The U.S. Department of Justice and the Federal Communications Commission were not named in the settlement, which covers 2007 to 2017.
The commission did not return requests for comment.
The Justice Department, which had asked for a $200 million penalty, had also requested that the FCC seek a $150 million penalty.
Time will pay $100 million to Tribune and $70 to the news organizations for their claims against the cable company, the companies said in a statement.
Tribune and other news outlets have accused Time Warner of charging the cable companies to offer higher-speed internet services than they already provide to subscribers.
Time agreed to pay the FCC $70 a month for the use of the $150 monthly rate for a four-year period beginning in 2019.
The FCC has also sued Time Warner on antitrust grounds.