Comcast-NBC Deal Review Focuses On Consumers
Federal regulators reviewing the proposed $30 billion merger of Comcast and NBC Universal pledged Thursday to closely scrutinize the transaction's impact on consumers and the marketplace.
"Senator, I can assure you there is no rubber stamp at the Department of Justice," Assistant Attorney General Christine Varney, who heads the antitrust division, said during an exchange with Sen. Olympia Snowe, R-Maine, at a Senate Commerce Committee hearing.
"The interests of consumers will be heard in our review of this transaction -- they have to be. That's our core obligation," said FCC Chairman Julius Genachowski, who also appeared before the panel.
The regulatory chiefs testified at the fourth congressional hearing on the deal, which would combine Comcast, the nation's largest cable and residential broadband provider, with NBCU, one of the largest programming ventures. Although their testimony marked the first time these officials have answered questions publicly about the planned transaction, both were restricted from discussing any specifics while it is still under government review. Both agencies are expected to issue decisions in the fourth quarter of the year.
Several members voiced concerns, including Senate Commerce Chairman John (Jay) Rockefeller, D-W.Va. "When companies swell to include both content and distribution we need to pay attention," he said. "It is vitally important that when we have mergers in these markets, consumers cannot be left with less programming and higher rates." Also skeptical were Democratic Sen. Byron Dorgan of North Dakota, Claire McCaskill of Missouri and Maria Cantwell of Washington, the only Commerce member to recommend that the deal be blocked.
Other key lawmakers took a wait-and-see attitude. "I have an open mind on this," said Commerce Communications Subcommittee Chairman John Kerry, D-Mass. "Mergers can increase efficiencies and promote innovation when done well," or "distort markets, reduce consumer choice, and drive up the price of services" when approved without rigorous conditions, he said. Commerce ranking member Kay Bailey Hutchison, R-Texas, urged the agencies to "tread carefully" with their reviews and refrain from drawing in ancillary policy matters, but also not to harm consumers, innovation and investment. To read more, click here. (Subscription required)
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