FCC, Justice Department Impose Conditions on Comcast/NBC Universal Merger

On Tuesday, January 18, the Federal Communications Commission (FCC) gave its approval to the acquisition of NBC-Universal by Comcast Corp. The new company will become the largest media conglomerate in the United States, with a combined 16.7 million broadband and 23 million cable subscribers, as well as an extensive film and television library and must-have NBC and regional sports programming.

The FCC voted 4-to-1 to approve the merger with conditions and enforceable commitments necessary to mitigate the acknowledged anti-competitive harm from the media giant. Commissioner Michael Copps was the lone dissenting vote. The conditions of the merger mandate that the new venture must share its content with other multi-channel video providers and online video distributors.

The Justice Department (DOJ) also reached a settlement in its antitrust review of the merger, subject to conditions that require that the new company does not leverage its considerable size to eliminate competition from other television networks or online video distributors.

For the first time, the FCC and the DOJ acknowledged online video distribution. A key merger condition compels the new company to offer NBC-Universal content at the same terms and conditions to competing cable, satellite, and online TV distributors.

Additional conditions require the new venture to develop and support additional minority-focused programming, an agreement to ban interactive advertising to children, to offer broadband service for low-income households at $9.95/month and to provide computer equipment priced below $150, and to offer standalone Internet access at speeds capable of watching online video. The new venture must maintain at least the current level of news and information programming, and in some cases expand news and other local content at the broadcast television stations that are currently owned and operated by NBC.

The conditions are set for a minimum of seven years.

FCC Grants Approval of Comcast-NBCU Transition (FCC)

Justice Department Allows Comcast-NBCU Joint Venture to Proceed with Conditions