Kohl Wary Of Comcast-NBCU Deal
May 26, 2010
| 3:36 PM
An influential Democratic senator urged federal regulators today to only approve the proposed $30 billion merger of Comcast and NBC Universal if they determine that "sufficient conditions" are "unlikely to cause any substantial lessening of competition," CongressDaily reported.
At the very least, Senate Judiciary Antitrust Subcommittee Chairman Herb Kohl, D-Wis., said any approval should include extensive protections for competitors, consumers and independent programmers.
Kohl detailed his views in a letter to FCC Chairman Julius Genachowski and Assistant Attorney General Christine Varney. The lawmaker recommended 11 requirements, including the divestiture of NBC's stake in the online video site Hulu, a ban on Comcast shifting marquee NBC content to cable for a decade and restricting Comcast from blocking or degrading competing video services online.
Kohl weighed in after Congress held four hearings earlier this year on the merger and as lobbying over the transaction continues to intensify. The companies have said they're expecting a regulatory decision in the fourth quarter.
The senator was blunt in the six-page correspondence, warning that the proposed combination "has the potential for serious anti-competitive and anti-consumer effects." Any conditions "should be in the form of a legally binding and enforceable undertaking, either as part of an antitrust consent decree or a condition to the FCC's approval of the license transfer," he wrote.
Comcast Vice President of Government Communications Sena Fitzmaurice defended the merger as "pro-competitive, pro-consumer and in the public interest." She added, "We expect a thorough and [expeditious] regulatory review and that any conditions will not unduly burden either Comcast or NBCU's businesses." To read more, click here. (Subscription required)
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