Comcast-NBC Hearing Recap

The House Committee on the Judiciary held a hearing Thursday on the proposed merger of Comcast and NBC Universal. Witnesses included Comcast CEO Brian Roberts, NBC President Jeff Zucker, Independent Film & Television Alliance CEO Jean Prewitt, Consumer Federation of America's Mark Cooper, Communications Workers of America President Larry Cohen, Media Access Project CEO Andrew Jay Schwartzman, National Urban League President Marc Morial, and Prof Thomas Hazlett.

Committee Chairman John Conyers (D-MI) said, "I must say that I have always been alarmed about these combinations. The role of the Internet versus the role of cable is something we've got to begin to look at on a far larger basis than the one proposed merger before this committee this morning." While Comcast and NBC have suggested that their primarily vertical joint venture does not raise particular anticompetitive concerns not already addressed by their voluntary conditions and excising rules, Chairman Conyers said his starting point was that there were cases where vertical mergers can be "more dangerous" than horizontal ones. He also said the committee needed to pay close attention to the role of the Internet in the deal. The companies have argued that they are only a fraction of that hugely competitive marketplace, one dominated by YouTube. Committee members sought assurances that Comcast wouldn't use its dominance in the cable and Internet delivery markets to favor its own content, especially sports and news programming.

"This merger must not deny the public access to new messengers and new messages," warned IFTA's Jean Prewitt. "A handful of executives now decide how, when and whether shows reach the public. They're closing the door on diversity." CWA's Cohen said the deal concentrates too much market control in one company. Comcast will curb labor organizing through firings and attempts to decertify union members at NBC Universal, he said. Dr. Cooper and Andrew Schwartzman said the deal was clearly anticompetitive. Both were reprising earlier appearances at Hill hearings made three weeks ago examining the deal. Cooper said that by standard antitrust measures, combining Comcast and NBC in the 12 markets where NBC has a station and Comcast operates cable systems raises red flags. He said the two also compete on the news and sports fronts. Marc Morial said that while it is not yet taking a position on the Comcast/NBCU merger, the Urban League does say that Comcast should be entitled to "great respect" for its record on diversity issues, and says NBC has made "important strides."