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US Department of Justice expected to block Comcast-Time Warner merger

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As Apple is said to be in talks with content owners for its own upcoming streaming television service, the U.S. Department of Justice appears poised to block a proposed Comcast acquisition of Time Warner Cable.

U.S. antitrust lawyers are said to be leaning against the proposed Comcast-Time Warner deal, according to sources who spoke with Bloomberg. Reacting to the news, Minnesota Sen. Al Franken penned an op-ed reiterating his own opposition to the potential merger, which he believes would be bad for consumers.

Comcast hopes to buy rival cable operator Time Warner Cable for $45.2 billion, making the nation's largest Internet and TV company even bigger. Such a deal could have major implications for Apple and others who cut deals for content, and also require home Internet use for services like iTunes and Apple TV.

Franken was also an opponent of Comcast in the net neutrality debate, and helped to successfully convince the Federal Communications Commission to regulate Internet service providers under the Communications Act. This prevents ISPs like Comcast and Time Warner from creating so-called "Internet fast lanes."

In his latest scathing critique, Franken calls Comcast "greedy and dishonest," noting that the cable provider has prioritized its own content and networks it owns over rivals. In one example, after its purchase of NBCUniversal, Comcast prioritized its own CNBC network over rival Bloomberg.

While the NBCUniversal deal went through, he's hoping that public opposition to a Comcast-Time Warner merger could help convince the DOJ to block it.

"No company should be entrusted with the kind of dominant market position Comcast is seeking in this deal, especially when the company in question has proven that they simply can't be trusted," Franken said.

Scrutiny of the proposed Comcast-Time Warner deal comes as Apple is said to be in talks with content providers for a forthcoming subscription TV service, which is rumored to launch this fall for between $20 and $40 per month.

Apple is reportedly in talks with Disney, CBS, 20th Century Fox, Discovery, and Viacom to bring their content to a new streaming service that would bow this fall. Pricing is thought to fall between $20 and $40 per month, and the company is reportedly offering to share viewership data with content owners to entice them to cooperate.

Potential content talks with Comcast over its NBCUniversal programming were said to have stalled, but the DOJ could force Comcast to ink a deal with Apple per the terms of its purchase of NBCUniversal. Under the regulatory concessions agreed to by Comcast in 2011, the company must treat online video services as essentially equal to cable companies.



17 Comments

gqb 17 Years · 1933 comments

Cool... now retroactively go in and invalidate their obscene acquisition of NBC. Or better yet, split Comcast (and Time Warner) into separate ISP and Cable companies, and make them divest one or the other. That the same company who's primary income is from cable packages also owns the pipeline for the only competition is insane. We all know that Big Cable's tactic on cable cutters will simply be to jack up internet prices. Internet has become just as basic a basic utility as electricity, and needs to be regulated as such.

rp2011 14 Years · 159 comments

Hell yeah I hope so. These two monopolies have delivered crappy service since customers have no choice but to swallow whatever crap they offer. And they want to strengthen their monopoly? **** no!

ktappe 16 Years · 824 comments

Sweet. We all needed some good news this Monday.

starbird73 14 Years · 538 comments

Quote:
Originally Posted by GQB 

Cool... now retroactively go in and invalidate their obscene acquisition of NBC.

Or better yet, split Comcast (and Time Warner) into separate ISP and Cable companies, and make them divest one or the other.
That the same company who's primary income is from cable packages also owns the pipeline for the only competition is insane. We all know that Big Cable's tactic on cable cutters will simply be to jack up internet prices.

Internet has become just as basic a basic utility as electricity, and needs to be regulated as such.


100% agree. This fact is why a la carte TV will not be a cheaper alternative that everyone assumes it should be.