Senators air concerns over proposed NBC Universal - Comcast merger
Senate lawmakers recently pressed both the Federal Communications Commission and the Department of Justice on the proposed merger between NBC Universal and cable television giant Comcast.
Sen. Maria Cantwell (D-WA) said she does not support the merger, particularly after NBC decided to withhold much of its Vancouver Olympics coverage to non-cable subscribers. Both Cantwell and Sen. John Kerry (D-MA) raised concerns about what the new company would mean for consumers and competition.
Sen. Bryan Dorgan (D-ND) also indicated that he does not trust Comcast’s claims that the merger is good for consumers. Congress heard similar claims during the Time Warner buyout of AOL in 2000. The resulting merger process was riddled with problems.
John Wells, president of the Writer's Guild of America, West, also testified before the subcommittee:
The Guild shares the concerns about labor practices that have been voiced by the Communication Workers of America (CWA). The CWA's experience with Comcast has demonstrated a poor track record of respecting worker rights. Where Comcast has inherited union contracts through business acquisitions it has failed to abide by promises to respect employee's rights and collective bargaining.
Wells raised additional concerns over the unprecedented control Comcast NBC would have over both the creation and distribution of their content. The combined company would control television for 20 percent of Americans.
CWA President Larry Cohen testified before the House Judiciary Committee in February, airing similar concerns about labor practices:
"NBCU will be under pressure to cut jobs, raise prices or renege on that debt. There are no warranties, no guarantees for consumers, workers and communities. Companies make lots of commitments but don't have to carry them out."
Many consumer-protection proposals were considered during the hearing, including a requirement that Comcast NBC Universal allocate 25 percent of primetime television on its broadcast and cable networks to independent programming.
Only 10 percent of programming currently aired on NBC is independently produced, compared with 78 percent 20 years ago.
Justice will review the merger for antitrust concerns while the FCC will decide on whether the deal would negatively affect consumers.
Senators air concerns with NBC-Comcast deal (The Hill)
Sen. Kohl questions NBC about Olympics pay-to-watch requirement (Speedmatters)
FCC, DOJ on Comcast (The Washington Post)
TCGplayer workers rally for livable wages and launch a report on poverty-level wages at the eBay subsidiary
Apple retail workers in Oklahoma City win first collective contract with CWA
Labor and public interest groups defend FCC's broadcast ownership rules promoting competition, diversity, and localism on air