US watchdogs okay Comcast/NBCU deal

The Federal Communications Commission (FCC) has okayed Comcast Communications’ acquisition of NBC Universal (NBCU) but has slapped certain conditions on the controversial US$13.8bn deal.

The US broadcasting regulator today ruled that the deal – which marries the country’s largest cable company and internet service provider with NBCU content and channels – “is in the public interest.”

Provided, that is, the combined Comcast/NBCU entity increases both local news and children’s programming and does more to “enhance the diversity of programming” available to Spanish-speaking audiences. The new company must also offer broadband services to low-income Americans at reduced prices and provide similar service to schools, libraries and underserved communities.

Contrary to some predictions, Comcast/NBCU will not be forced to drop web video platform Hulu, in which NBCU owns a stake. But the FCC said the new company may not exercise “corporate control” over the online video portal nor “unreasonably restrict” its programming from other online broadcasters.

The deal was approved 4-1. Only FCC commissioner Michael Copps voted against, warning in a separate statement that it “confers too much power in one company’s hands.”

The approval came within hours of a similar nod from the US Department of Justice. The deal, originally expected to close by the end of last year, is now reportedly due to wrap up within the month.

Reacting to the ruling, Independent Film & Television Alliance president and CEO Jean Prewitt said: “The closing of the joint venture triggers the July 12, 2010, agreement between the IFTA and Comcast-NBCU, which will provide real opportunities for independent producers on the Comcast and NBC platforms, and increase the public’s access to diverse programming.”

The agreement between IFTA and Comcast-NBCU includes increased development and pitch opportunities, the creation of a development fund for independents and greater access to Comcast’s new media platforms.