Comcast-NBCU Deadlines On Hold for Companies’ Studies

The FCC paused its clock on consideration of Comcast’s agreement to buy control of NBC Universal, because staffers want additional information from the companies. Comment deadlines on the deal are on hold until Comcast, NBC Universal and NBCU’s parent, General Electric, provide the information, said a Media Bureau order released Friday. A report will take up “the claimed benefits from the transaction” and another its effect on video distribution online, said the ruling signed by bureau Chief Bill Lake.

The delay gives the FCC a chance to head off efforts in Congress to force the commission to extend the comment period 45 days, as the Media Access Project unsuccessfully sought, said two communications lawyers not involved in the deal. HR-5020 to that effect, sponsored by Rep. Maxine Waters, D-Calif., had 56 co-sponsors Friday, up from six from the day before (CD April 16 p5). The delay also gives opponents of the purchase time to consider how the commission’s April loss in a lawsuit by Comcast challenging a network management censure affects the deal, said an antitrust lawyer and deal opponent. The bureau order didn’t mention Comcast v. FCC. Staffers requested the additional reports before the court ruling, said a company spokeswoman. A bureau spokeswoman had no further comment beyond the order.

The FCC stopped the “informal time clock” setting a goal of reviewing deals within 180 days, the bureau said. The clock was at 29 days Friday and final comments were to be due June 17. After the materials are submitted by the companies, the clock will start again on the deadlines, the bureau said. “This will give commenters the full amount of time they would have had if the reports had been available when the Public Notice was issued” March 18 (CD March 19 p2) seeking feedback on the deal, the bureau said.

"In light of the approaching filing deadlines, and in order to provide adequate time for all interested parties to review and comment on these additional economic reports,” filing deadlines are suspended, the bureau said. After staffers looked over Comcast, NBC Universal and GE’s economic analysis, they sought the additional reviews “consistent with this requirement that issues be identified early in the proceeding so that they may be fully ventilated by the Applicants,” it continued. Comcast looks forward to working with the commission to get it the additional information, a company spokeswoman said. “We know they want to conduct a thorough and expeditious review of this transaction and we'll be submitting these reports as soon as possible. We understand and agree in this case with the commission’s desire to have a full comment period on key documents submitted by the applicants.”

The extra time gives Media Access Project and other opponents a chance to consider how Comcast affects the deal conditions they seek, said Andrew Schwartzman, senior vice president of the deal opponent. “We may want different conditions as a result of that decision,” he said. “You have to balance the delay against the commission getting an adequate record especially in the context of the commission taking the laudable step of warning everybody that you only get one bite at the apple” and all conditions must be proposed by the opposition deadline, he said. The order dismissed as moot the project’s request for 45 more days to comment on the deal because of the Comcast decision. The request had cited Comcast. A delay such as this one doesn’t seem unusual in commission reviews of major transactions, said antitrust expert Michael Hazzard of Arent Fox, who isn’t involved in the case. The Comcast case “opens up a whole new line of potential asks for conditions on the merger,” the attorney said.

Separately, a union said public hearings on Comcast-NBC Universal would allow the FCC to hear from consumers and industry employees and get “valuable data” about the deal’s impact on media diversity, quality, competition and jobs. It’s “imperative” that the commission “seek the broadest possible input from all segments of the population about the impact of this merger,” President Larry Cohen of the Communications Workers of America wrote Chairman Julius Genachowski last week. Cohen supported a recent request by other groups for public hearings (CD April 8 p14).