The Comcast-NBC Merger Offers Little Guidance for AT&T-Time Warner

On the surface, the AT&T-Time Warner deal bears a strong resemblance to Comcast's 2011 acquisition of NBC Universal. Both AT&T and its opponents have already invoked the Comcast-NBC Universal merger in support of their case. In its response to the Department of Justice's lawsuit, AT&T argued that the government’s 2011 decision to approve the Comcast deal, with conditions, set a precedent that should be respected. But AT&T’s opponents argue that the Comcast-NBC Universal deal created a media behemoth with too much power over the media landscape. The DOJ didn’t weigh in on the effects of the previous merger. But it cited objections filed by DirecTV in 2010, claiming the merger would increase costs for consumers because Comcast could force competitors to carry NBC Universal content. The irony was lost on no one: DirecTV is now owned by AT&T. Seven years later, it's hard to draw clear conclusions about the effects of the Comcast-NBC Universal deal. Consumers aren't paying any less for cable, and don't seem any happier with their Comcast service. On the other hand, many of the biggest fears have not come to pass, in part because of the conditions attached by regulators. It's too soon to say how Comcast will behave once the last of those requirements expire later in 2018.