FCC wants conditions on Comcast/NBCU merger

US regulators are likely to greenlight cableco Comcast Communications’ US$30bn takeover of NBC Universal (NBCU) but want several conditions placed on the deal to make sure the market stays competitive.

The planned merger took a big step forward yesterday as Federal Communications Commission (FCC) chairman Julius Genachowski revealed a draft proposal that gave Comcast the go-ahead to buy out General Electric’s majority stake in NBCU in the New Year.

But the regulator said it wanted several conditions to be met, and though these conditions haven’t yet been disclosed, officials told US reporters yesterday that they broadly relate to ensuring NBCU programming is still available to rival TV platforms at competitive rates.

Critics say the merger will stifle competition in the cable, internet and programming markets, and will give the merged Comcast-NBCU the power to dictate market prices.

And despite news suggesting that the FCC ultimately supports the merged entity, the Department of Justice (DoJ) is yet to openly offer its support. Other bodies, including the European Union, have already given the deal the thumbs up.

In a blogpost yesterday, Comcast executive VP of public policy David Cohen said the deal had seen one of the longest comment periods in transition review history, which had produced more than 500,000 documents supporting a merger.

“Starting on the day of the deal’s announcement, we have emphasised that this transaction is pro-competitive, pro-consumer and will deliver real public interest benefits. We made a number of significant commitments on day one designed to assure the government and the public that the public interest would be served and these benefits realised. And we have continued to refine and enhance our commitments throughout the year-long review by the FCC and the DoJ.

“We believe the draft FCC order as circulated ensures these benefits will be realised and will enable us to operate the NBC Universal and legacy Comcast businesses in an appropriate way.”