Comcast-NBCU Merger Faces Greater Scrutiny

An increasingly ugly dispute between Fox and Cablevision finally came to a conclusion this past week, leaving in its wake serious implications for the proposed Comcast-NBCU merger.

The merger between Comcast and NBC Universal would unite one of the biggest content producers with one of the biggest players in the content distribution field. As consumer groups have argued, this merger could seriously hurt competition, specifically in the online video arena, if it goes through without strict regulation in place.

The Fox-Cablevision spat resulted in popular Fox programs being blocked for Cablevision subscribers. The situation was resolved this past weekend. Stuck in the middle of this power-play were consumers, who were left in the cold while both parties feuded.

On a larger scale, this type of behavior could have serious repercussions if Comcast and NBCU are allowed to merge without conditions to protect consumers. A merged Comcast-NBCU could use its control over must-have programming to raise prices in retransmission negotiations with other broadcast stations. California Congresswoman, Maxine Waters recently commented:

"I have grown increasingly concerned with the potential harm that could result if such a dispute ever arose between a competing cable company and a combined Comcast-NBC. Absent substantive diversity and other public interest conditions, the Comcast-NBC merger could prove harmful to competition among traditional cable and broadcast companies, as well as the American public's ability to access independent and alternative sources of news and entertainment."

With the dangers of such a merger apparent, the FCC and Justice Department will soon have to reach a conclusion on how much power over access and pricing for TV and online programming Comcast will be allowed to have.

Cablevision-Fox Spat May Raise Hurdles for Comcast-NBC

Rep. Waters Links Cablevision Conflict to NBC-Comcast Merger