NYT Urges FCC to Block Comcast/Time Warner Merger

Add the New York Times to the list of objections to the pending Comcast and Time Warner Cable merger.

 

The New York Times editorial board on Sunday urged the Federal Communications Commission and the Department of Justice to block the $45 billion acquisition of Time Warner Cable by Comcast.

 

"The combined company would provide cable-TV service to nearly 30 percent of American homes and high-speed Internet service to nearly 40 percent. Even without this merger and the proposed AT&T-DirecTV deal, the telecommunications industry has limited competition, especially in the critical market for high-speed Internet service, or broadband, where consumer choice usually means picking between the local cable or phone company" the NYT urged.

 

"By buying Time Warner Cable, Comcast would become a gatekeeper over what consumers watch, read and listen to. The company would have more power to compel Internet content companies like Netflix and Google, which owns YouTube, to pay Comcast for better access to its broadband network. Netflix, a dominant player in video streaming, has already signed such an agreement with the company. This could put start-ups and smaller companies without deep pockets at a competitive disadvantage." said the Times.

 

In a recent study by the American Customer Satisfaction Index, both Comcast and Time Warner Cable ranked poorly and have the most dissatisfied customers among subscription TV and Internet services.

 

Read the full NYT Editorial here.