CFA Petitions the FCC to block the Comcast-Time Warner merger

Consumer Federation of America believes “Online Video Competition is the Last and Only Hope to Break the Stranglehold of Cable.”

Information posted in press release:

Washington, DC (August 25, 2014) – The Consumer Federation of America (CFA) and its member groups today filed a petition calling on the Federal Communications Commission (FCC) to block Comcast’s acquisition of Time Warner Cable and the swap of additional systems with Charter Communications.  The petition shows that the Comcast-Time Warner merger poses a much greater threat to competition, consumers and the public interest than the Comcast-NBCU merger, which has not benefited the public.

“The inevitable result of this merger will be higher prices, worse service, and less innovation,” Mark Cooper, CFA’s director of research said. “Just four years ago the FCC and the Department of Justice (DOJ) found that Comcast has market power, as the nation’s largest buyer of professional video content and the largest provider of both multichannel video programming and broadband Internet access service.

“The acquisition of Time Warner would increase Comcast’s market power by at least 50% and create a Goliath that would tower over the industry.  Comcast would be:

  • 1.5 times as large as the next largest multichannel video program distributor (MVPD),
  • 2 times as large as the next largest Internet access service provider,
  • 3 times as large as the next largest service provider with the capacity to deliver an integrated bundle of video and broadband,
  • the dominant cable and broadband operator in 24 of the nation’s largest 25 video markets, including the addition of the most important media markets, New York and Los Angeles.”
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