Industry Balks at Deal for a Cable Giant

Comcast’s proposed takeover of Time Warner Cable has sparked fears across the media industry that the combined giant would have too much influence over everything from cable industry pricing to the broadband-related services consumers can access.

TV network owners worry the merger could give Comcast too much control over TV-viewing data and the broadband market, industry executives say. Small cable operators, meanwhile, fear they could face higher costs as TV networks try to make up the difference from discounts that a larger Comcast would win. Companies with online-video offerings fret that Comcast could charge more aggressively for broadband use.

Regulators will have to weigh such concerns as they consider the $45 billion deal, which brings together the Nos. 1 and 2 cable operators. Comcast and TWC are expected to submit their merger documents to the Justice Department and Federal Communications Commission in coming weeks. After that, the FCC will invite comments from the public and competitors. Industry comments could shape any conditions regulators impose on the deal. The government approved Comcast's NBCUniversal acquisition in 2011 with conditions. Already the top executives at satellite-TV providers DirecTV and Dish Network have come out strongly against the deal, citing concerns about the power Comcast will have in the broadband market, where it would have nearly 40% of US subscribers.