Consumers Union Wants Government to Vet Comcast/Netflix Deal

The Consumers Union wants the Federal Communications Commission and Department of Justice to vet the deal between Comcast and Netflix, in which the latter paid for a direct connection to the former's network.

Comcast has said the deal does not mean Netflix is paying for preferential treatment, but instead that the direct linkup is providing a better user experience and opportunity for Netflix traffic to grow. In letters to FCC Chairman Tom Wheeler and Attorney General Eric Holder, Consumers Union points to recent Netflix-related declines in speeds and service interruptions and says it wants the FCC and Justice to look into whether Comcast selectively degraded service so that Netflix would seek faster and more expensive service from Comcast. The group wants the government to investigate the speed issue, given that Comcast agreed to abide by no-blocking or hindering of content providers conditions as part of the NBCU deal. “We believe it raises serious concerns about the clout of Comcast, its ability to affect the prices and quality of service it offers consumers, and the alarming precedent it sets for the entire marketplace,” Delara Derakhshani, policy counsel for Consumers Union, said of the Netflix deal.