Wide Array of Groups Seek ‘Meaningful’ Comcast-NBCU Curbs
Regulators should impose “meaningful conditions” on the purchase of control of NBC Universal by Comcast so they can’t withhold broadcast or cable programming from subscription-TV rivals, 25 consumer and industry groups wrote legislators and President Barack Obama. “A merger of this size and scope will have a devastating impact on the media marketplace. It will result in less competition, higher consumer costs and fewer content choices."
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The groups expressed concern Thursday over broadcast, cable and online content without seeking specific conditions. The Justice Department confirmed Wednesday that it, not the FTC, will review the deal. Comcast is still expected to apply to the FCC for approval later this month, which a company spokeswoman confirmed.
“Control of NBCU programming also would give Comcast the opportunity to prioritize its own online video products over those of its competitors -- and sharply reduce online video distribution altogether -- pushing independent producers out of the picture,” the letter said. Conditions proposed by Comcast when it unveiled the deal (WID Dec 4 p10) are “mere window dressing,” it said. “They do not address the competitive issues raised by the merged company’s control over online video distribution -- an increasingly important platform for television distribution.” Signatories included the American Cable Association, Communications Workers of America, Consumers Union, Free Press, Media Access Project, National Association of Independent Networks, National Telecommunications Cooperative Association, Public Knowledge, Satellite Broadcasting and Communications Association and writers guilds.
The deal, “viewed objectively” will benefit consumers and the public interest, a case Comcast looks forward to making to the FCC and Justice Department, said the spokeswoman for the cable operator. That Justice will review the Comcast-NBC Universal transaction “is a good sign,” said Executive Director Josh Silver of Free Press. “The DOJ’s antitrust division now has a chance to make a clean break from the inactivity of recent years and tackle this merger with the urgency it now deserves.”
Justice’s decision to lead the antitrust analysis may have few practical implications in the short term for the merging companies and the FCC’s upcoming review of the deal, a commission official and an antitrust attorney said. Comcast still plans to file an application for the NBC Universal transaction with the FCC Jan. 22-29, said a commission official and an industry executive. FCC staffers likely will visit Justice to review confidential documents that Comcast and NBC Universal will provide to the department, and work out a deal with the companies for some of the information to also be filed with the FCC, perhaps under protective order, a commission official said.
“There is absolutely no evidence that this proposed transaction would produce any of the adverse effects these groups claim the deal would cause,” the Comcast spokeswoman said. “Existing law already prohibits any discrimination by Comcast against other providers regarding programming we own and would preclude Comcast from ‘prioritizing’ NBCU channels. Further, the emerging online video market is extraordinarily competitive, with sites like YouTube, Netflix, iTunes and dozens of others already offering video from a wide range of content providers, large and small.”