Press Release
Free Press Urges FCC to Reject Comcast/NBC Deal
Contact: Timothy Karr, 201-533-8838
CHICAGO – Free Press President and CEO Josh Silver will testify today before the Federal Communications Commission’s public forum on Comcast’s proposed takeover of NBC Universal. Free Press has been an outspoken critic of the proposed merger, which would result in higher prices for consumers and fewer choices in programming and services, and would limit innovation in the emerging online video market.
Comcast is Chicago’s dominant cable and Internet provider, and now the company wants to acquire NBC 5 Chicago and Telemundo Chicago. If this deal goes through, nearly a quarter of Chicago's commercial cable channels in the most popular cable package will be owned by Comcast.
In excerpts from his prepared testimony, Silver said:
“Policymaking at the behest of the largest companies – across industries – is threatening our economy, our oceans, our security and the very viability of our democracy. Just look at the ongoing recession or the Gulf of Mexico for the most recent examples. … Insufficient government oversight has already allowed companies like Comcast to overcharge customers who have no alternative providers when bills are too high or service quality is too low.
“The merger would allow a single company to own a huge array of popular content, and to exert excessive control over how it is distributed over the airwaves, cable and Internet. Such dominance over any one of these provides sufficient reason for the FCC to block the transaction. The merged giant’s power over all three platforms requires that regulators stop the deal.
“Comcast and NBC bear the burden of proving to the Commission that this transaction not only will not harm consumers and competition, but that it will actually advance public interest goals. Comcast and NBC have not made and cannot make this showing. … Some have suggested that if we place conditions on the deal, everything will be OK. But requiring conditions to neutralize the harms of a bad merger is not the same as ensuring that the merger affirmatively produces real public interest outcomes. Importantly, such conditions would expire in a few years. With this deal, the anticompetitive incentives would be part of the DNA of the merged company, making conditions with a shelf life about as helpful as putting a Band-Aid on a broken leg.”
Last month, Free Press and other public interest groups filed a Petition to Deny with the FCC, and, along with allies, filed nearly 70,000 signatures opposing the merger.
A copy of Josh Silver’s testimony is here: http://www.freepress.net/files/Silver_Testimony_Chicago_07132010.pdf
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Free Press is a national, nonpartisan organization working to reform the media. Free Press does not support or oppose any candidate for public office. Through education, organizing and advocacy, we promote diverse and independent media ownership, strong public media, and universal access to communications. Learn more at www.freepress.net
Comcast is Chicago’s dominant cable and Internet provider, and now the company wants to acquire NBC 5 Chicago and Telemundo Chicago. If this deal goes through, nearly a quarter of Chicago's commercial cable channels in the most popular cable package will be owned by Comcast.
In excerpts from his prepared testimony, Silver said:
“Policymaking at the behest of the largest companies – across industries – is threatening our economy, our oceans, our security and the very viability of our democracy. Just look at the ongoing recession or the Gulf of Mexico for the most recent examples. … Insufficient government oversight has already allowed companies like Comcast to overcharge customers who have no alternative providers when bills are too high or service quality is too low.
“The merger would allow a single company to own a huge array of popular content, and to exert excessive control over how it is distributed over the airwaves, cable and Internet. Such dominance over any one of these provides sufficient reason for the FCC to block the transaction. The merged giant’s power over all three platforms requires that regulators stop the deal.
“Comcast and NBC bear the burden of proving to the Commission that this transaction not only will not harm consumers and competition, but that it will actually advance public interest goals. Comcast and NBC have not made and cannot make this showing. … Some have suggested that if we place conditions on the deal, everything will be OK. But requiring conditions to neutralize the harms of a bad merger is not the same as ensuring that the merger affirmatively produces real public interest outcomes. Importantly, such conditions would expire in a few years. With this deal, the anticompetitive incentives would be part of the DNA of the merged company, making conditions with a shelf life about as helpful as putting a Band-Aid on a broken leg.”
Last month, Free Press and other public interest groups filed a Petition to Deny with the FCC, and, along with allies, filed nearly 70,000 signatures opposing the merger.
A copy of Josh Silver’s testimony is here: http://www.freepress.net/files/Silver_Testimony_Chicago_07132010.pdf
# # #
Free Press is a national, nonpartisan organization working to reform the media. Free Press does not support or oppose any candidate for public office. Through education, organizing and advocacy, we promote diverse and independent media ownership, strong public media, and universal access to communications. Learn more at www.freepress.net
