Justice Discusses Comcast-NBCU With An Opponent, Others
Comcast’s deal to buy control of NBC Universal has been discussed by the Department of Justice with some of those likely to be affected, at this early stage of antitrust review (CD March 10 p2), said some following the transaction and an opponent. An Asian American group that wants Comcast to pay $1 billion into a media diversity fund to be run by the FCC was the first to say in a commission filing that it has met with Justice. Others probably have discussed the deal with the department or will, analysts and a deal opponent said.
The Mabuhay Alliance said in a filing that it met Friday with Justice about the deal. A representative of the group and the department didn’t reply to messages seeking further comment on the meeting. The alliance said it will try to meet with Chairman Jon Leibowitz of the Federal Trade Commission and has met with the chairs of the Congressional Black Caucus, Hispanic Caucus, Asian Pacific Caucus and “other key Congressional leaders whose policies and positions may be affected by this acquisition,” or will see them soon. It’s unusual for a group to publicize a meeting with Justice on a deal, but it’s a way to show “they're really exercised and they want to make their concerns known,” said President Andrew Schwartzman of the Media Access Project (MAP), which opposes the transaction.
"We certainly intend to make our views known to the Justice Department,” Schwartzman said. “Whether it will involve a meeting or not, I'm not sure.” Justice has apparently started asking independent programmers, small cable operators and other companies for information on Comcast-NBC Universal, Stifel Nicolaus analysts wrote. “But we do not believe the Bells or large cable companies have yet offered up or been called on to provide data or views.” The firm expects the FCC and Justice to approve the deal after a thorough review, said analyst David Kaut.
"In the context of a vertical merger, where the conduit also owns a large chunk of the content, there is a very real possibility for Comcast to engage in content discrimination,” said an FCC filing by the Greenlining Institute. It, Mabuhay and others met last week with Commissioner Michael Copps, Chief Diversity Officer Mark Lloyd, aides to Commissioner Meredith Baker and Media Bureau officials. The Memphis Urban League said Thursday it supports the deal, because the organization and Comcast share the goal of “dissolution of social and economic barriers in our communities.”
Others lent support to MAP’s request for 45 more days to oppose Comcast-NBC Universal (CD March 25 p6). They include the National Telecommunications Cooperative Association, Organization for the Promotion and Advancement of Small Telecommunications Companies, National Rural Telecommunications Cooperative and Rural Independent Competitive Alliance, a review of filings in docket 10-56 showed. Comcast’s complete request for approval of the deal shouldn’t be considered to have been submitted to the FCC until last week, when an economic analysis paid for by the cable operator, NBC Universal and NBCU parent General Electric was made publicly available, said Research Director Mark Cooper of the Consumer Federation of America, a deal opponent also supporting a comment-deadline extension. “You're going to find congresspeople who are going to complain about how long it takes who are going to blame the FCC -- it’s not their fault,” he said. “This baloney about ‘hurry up, hurry up [isn’t] really fair.”