Netflix calls on FCC to reject AT&T merger unless changes are made

Netflix is urging federal regulators to deny the $48 billion merger of AT&T and DIRECTV unless changes are made to the proposal. The online video streaming giant made the call during a meeting with the Federal Communications Commission. "We've been highlighting these concerns and the need for appropriate remedies since last September," said Netflix spokeswoman Anne Marie Squeo. The merger with DIRECTV would make AT&T the largest provider of cable and satellite service, and could make it the largest Internet service provider as well, Netflix said. "Such market power creates new incentives and abilities to harm entities that AT&T perceives as competitive threats, and will exacerbate the anticompetitive behavior in which AT&T has already engaged," according to the filing.

Netflix cited previous interconnection disputes with AT&T. It said the company's purchase of a legacy video service could make it see online video distributors (OVD) -- including Netflix -- as a threat. "AT&T’s investment in a business model that profits by selling bundled programming packages will result in a powerful incentive to protect that model," the filing said. The Netflix filing used strong language, calling on the FCC to "reject the merger as currently proposed."