Competition/Antitrust

The European Commission has made commitments offered by Amazon legally binding under European Union antitrust rules. Amazon's commitments address the Commission's competition concerns over Amazon's use of non-public marketplace seller data and over a possible bias in granting sellers access to its Buy Box and its Prime program. Amazon's practices raised three competition concerns:

Top cable industry analyst Craig Moffett issued a report with a provocative title, asking, “Is cable a good business?” Clearly, MoffettNathanson’s principal and senior analyst believes Wall Street doesn’t think so.

The Senate Commerce Committee's Subcommittee on Communications, Media and Broadband held a hearing examining ongoing and past efforts within the public and private sectors to bring affordable, resilient and secure broadband to all communities. Four witnesses testified during the hearing: 

A Montana state commission advanced grant recommendations for a massive, $309 million rural broadband connectivity push, moving a previously delayed grantmaking process forward despite concerns voiced by Montana-based internet companies about the amount — approximately $110 million — slated for Charter Communications. The money fueling the program comes from the American Rescue Plan Act (ARPA).

The Federal Communications Commission's new broadband maps give us a view of what the broadband competition situation is in the United States. We want to answer the question of how many options a household has for broadband service. Using the new maps, and a 100 Mbps download and 20 upload throughput as the threshold for acceptable broadband, 37% of households have access to one offering, 34% have access to two offerings, and 18% have access to three or more offerings. This is slightly more concentration than was present in the most recent Form 477 data.

Cox Communications has filed a formal protest over Escambia County’s (FL) decision to select the Escambia River Electric Cooperative for a rural broadband project.

According to the Federal Communications Commission, more than 95 percent of Vermont households have broadband internet access. That’s the main takeaway from a newly updated map created by the FCC that tracks internet speeds and provider availability down to individual addresses. But officials at the Vermont Community Broadband Board said that the database overestimates the percent of households with broadband — and that federal funding is at stake.

For stock investors, a new risk is orbiting the satellite market: By trying to preserve competition, antitrust regulators could end up placing even more power in the hands of a privately-owned behemoth—Elon Musk‘s Starlink. California’s Viasat announced a $7.3 billion takeover of British satellite telecommunications company Inmarsat in late 2021, making it a centerpiece in the long-awaited consolidation of the satellite market. Yet, despite the deal being cleared by the U.K.

How fast will the cable industry move to an all-fiber plant? A Credit Suisse financial analyst believes the industry will be slow to upgrade from coax in less competitive areas, not seeing any urgency in upgrading to faster, more reliable technology, with speed and type of upgrades paced by the competition within the markets they serve. “We expect kind of different choices to be made in different [population dense] areas,” said Grant Joslin, Vice President US Telecom Equity Research, Credit Suisse.

There are three billing practices that are routine for large internet service providers (ISP) that smart competitors avoid. First is offering special low prices to attract new customers. The second is bundling, which means giving a discount to customers buying multiple products. Third is what has become known as hidden fees, where there are routine monthly fees that are not included in the online advertised price offers to customers. A lot of smaller ISPs wonder if they should match these same tactics.