The FCC has denied AT&T’s claim that Cox Broadcasting’s refusal to license Padres baseball games to AT&T in San Diego constitutes unfair competition. Cox has an exclusive deal the over-the-air station, Channel 4 San Diego, which has exclusive rights to the Padres games. Cox has agreed to sub-license Time-Warner cable, which like Cox serves large portions of the San Diego market. But Cox and Time-Warner engage in very little head-to-head competition. AT&T is a major competitor of Cox with respect to voice telephone, internet, and now television. The FCC staff found that because Channel 4 is available over the air, the existing unfair competition rules do not apply. The staff indicated that a Rule Making proceeding to determine whether the rule should be expanded would be the appropriate avenue to consider the matter. AT&T plans to appeal to the full Commission. As a dominant provider of cable TV programming in many areas of San Diego, Cox might have an antitrust duty to deal. As yet, AT&T has not pursued that avenue for relief.