Comcast, NBCU Defend Merger in New FCC Filing

WASHINGTON, D.C.: Comcast, GE and NBC Universal have submitted a 327-page filing to the Federal Communications Commission in defense of the Comcast/NBCU merger transaction, arguing that the deal won’t be to the detriment of consumers or competitors.

“The overwhelming weight of the factual, legal, and economic evidence shows that this transaction is pro-competitive, pro-consumer and in the public interest,” the filing says.

The submission stresses that the merger will preserve and strengthen free over-the-air broadcasting; expand the amount, quality and diversity of local and national programming; accelerate investment in and deployment of new-media content services; and preserve competition in the broadcast, cable and online video-distribution spaces. “The proposed transaction takes place against the backdrop of an extremely competitive and dynamic communications marketplace. Despite the self-serving claims of various competitors and the predictable responses from certain familiar critics, this transaction will not diminish competition in any relevant market.”

The filing argues that the deal is primarily a vertical one “between parties who do not, and will not, possess market power in any relevant market.” It continues: “This transaction will not result in ‘media consolidation’ or reduce competition in any meaningful respect.” In addition, the filing says, “When Comcast’s modest programming assets are combined with those of NBCU, the new entity will have about a 12 percent share of total advertising and affiliate revenues for national cable programming networks.” This would put it behind Disney/ABC, Time Warner and Viacom, the filing notes, and slightly ahead of News Corp, “leaving NBCU post-transaction in the same fourth-place position it occupies today.”

The filing goes on to note the efforts by Comcast and NBCU to address concerns about the merger. A deal is in place with the Independent Film & Television Alliance (IFTA) to create opportunities for independent producers at Comcast Cable and NBCU. Moreover, agreements have been clinched with Hispanic and African American organizations to address concerns about diversity.