Comcast-NBC Merger - Analysis of Proposed Deal Raises Serious Antitrust Issues

[katy_kay]

 

Comcast-NBC Merger: Just Say No

Analysis of Proposed Deal Raises Serious Antitrust Issues

FOR IMMEDIATE RELEASE

Date: December 3, 2009
Contact: Moira Vahey, 202-265-1490 x 31

 

WASHINGTON -- In response to the Comcast-NBC merger announcement this morning, Free Press and the Consumer Federation of America released a new analysis showing why the deal poses a major threat to video competition that would seriously harm the public interest.

"The pundits who are predicting this merger will be a cakewalk haven't done a careful analysis of the damage it will do to the competitive fabric of the video marketplace," said Mark Cooper, research director for the Consumer Federation of America. "This merger's potential to foreclose competition and stifle innovation is significant and real."

The report, Why the Comcast/NBC Merger Poses a Major Threat to Video Competition Antitrust Authorities Cannot Ignore, finds:

• A Comcast-NBC merger would hurt competition in traditional video markets. A merger between the nation's No. 1 cable operator and a major television network threatens competitive rivalry and diversity in the video marketplace. The new entity could leverage its control over content to charge more to its rivals - costs that will ultimately be paid by consumers.

• A Comcast-NBC merger would hurt competition in the emerging online video market. Comcast is the largest residential broadband Internet service provider; NBC produces top-notch content and has a substantial interest in the online video provider Hulu. A merged company would have a powerful motive to starve competing online video sources by denying them access to vital content.

• A Comcast-NBC merger would trigger more media consolidation. Approval of this deal will undoubtedly trigger a merger wave, as the remaining players in both the distribution and content markets seek to muscle-up to match this new behemoth. As a result, competition from new entrants will be limited, consumer choice will be restricted, and prices will rise.

The report also details the strict and comprehensive conditions that would need to be imposed by federal authorities before such a merger could be contemplated.

"The Obama administration has made a commitment to reinvigorating the nation's antitrust laws," said Corie Wright, policy counsel of Free Press. "They can't ignore the severe threat this merger poses and must take the necessary measures to prevent harm to competition and consumers. The correct response to this merger is to just say no."

Read Why the Comcast/NBC Merger Poses a Major Threat to Video Competition Antitrust Authorities Cannot Ignore: http://www.freepress.net/files/FP_CFA-Comcast-NBC-WhitePaper.pdf :

[anxiousschk]

I will readily admit that I don't fully understand antitrust laws....or the specific problems that this merger could cause for me.

However, it just doesn't seem "good." 

I wouldn't be pleased if it were Verizon and CBS either...

[katy_kay]

My first thought this morning was what happens when Comcast decides to not make NBC available for DirectTV or Dish or Verizon. 

Quoting anxiousschk:

I will readily admit that I don't fully understand antitrust laws....or the specific problems that this merger could cause for me.

However, it just doesn't seem "good." 

I wouldn't be pleased if it were Verizon and CBS either...

 

[la_bella_vita]

Quoting katy_kay:

My first thought this morning was what happens when Comcast decides to not make NBC available for DirectTV or Dish or Verizon. 

Quoting anxiousschk:

I will readily admit that I don't fully understand antitrust laws....or the specific problems that this merger could cause for me.

However, it just doesn't seem "good." 

I wouldn't be pleased if it were Verizon and CBS either...

 

That's what I was thinking as I read this....

[sweetie00]

 A Comcast-NBC merger would trigger more media consolidation

As a result, competition from new entrants will be limited, consumer choice will be restricted, and prices will rise

-yippee-just what we need. More media de-diversification. Let's just sell it all off to Murdoch.

[anxiousschk]

Excellent point...I love my Bravo. 

Do the satellite people pay for each channel they carry?  Could Comcast make NBC much more expensive to them, thereby making it more expensive for us?

Was this what the article was talking about?

Also....the gov't CAN block this, right?  Who is actually responsible for that? 

Quoting katy_kay:

My first thought this morning was what happens when Comcast decides to not make NBC available for DirectTV or Dish or Verizon. 

Quoting anxiousschk:

I will readily admit that I don't fully understand antitrust laws....or the specific problems that this merger could cause for me.

However, it just doesn't seem "good." 

I wouldn't be pleased if it were Verizon and CBS either...

[katy_kay]

Yes, I think the press release was alluding to the potential for Comcast raising prices to their competition which would be passed on to customers. 

I do think the government has some say in preventing this sale and my guess is the FCC has authority over this area but it's a guess on my part.  It seems like from the news this morning it's a done deal. 

Quoting anxiousschk:

Excellent point...I love my Bravo. 

Do the satellite people pay for each channel they carry?  Could Comcast make NBC much more expensive to them, thereby making it more expensive for us?

Was this what the article was talking about?

Also....the gov't CAN block this, right?  Who is actually responsible for that? 

Quoting katy_kay:

My first thought this morning was what happens when Comcast decides to not make NBC available for DirectTV or Dish or Verizon. 

Quoting anxiousschk:

I will readily admit that I don't fully understand antitrust laws....or the specific problems that this merger could cause for me.

However, it just doesn't seem "good." 

I wouldn't be pleased if it were Verizon and CBS either...