Regulators take wrong path on Comcast-NBC

[Commentary] As part of the Comcast-NBC merger review, the Federal Communications Commission mandated that other online video distributors (OVDs) gain access to NBC programming. Here's why that is unwise:

1) This merger is vertical, not horizontal, and thus does not increase market concentration at either the content production or distribution stage. So before imposing these cumbrous restrictions, we should first ask why Comcast would forego profit opportunities its own distribution network gets from independent producers. Or, conversely, why NBC would not provide other distribution networks with its content?

2) The consent decree turns the Department of Justice into the monitor of a quasi-public utility regime dedicated to some version of network neutrality.

3) Any public utility-type system imposes heavy administrative demands on the regulator and regulated alike.

4) Fourth, the consent decree creates poor incentive effects for all parties. Having to share new content without unfriendly outsiders could lead NBC to redirect or curtail its production to limit that risk. Sly OVDs could exaggerate their losses to get better terms. Constant government oversight could lead Comcast to shy away from novel innovations that raise the eyebrows of government officials. High administrative costs could chew up valuable resources.