Consumers Union urges government to block NBC-Comcast merger

The nonprofit consumer watchdog Consumers Union is stepping up its campaign against the proposed merger of Comcast and NBC Universal in Washington this week.

Consumers unveiled a new print and online ad campaign Tuesday that directs readers to visit the site SayNoToComcastNBC.org, where they can write to the Federal Communications Commission and urge them to block the deal.

“Regulators should reject Comcast’s buyout of NBC because it’s a bad deal for consumers and competition,” said Consumers Union policy counsel Parul Desai. “In this economy, consumers should not be at risk of higher prices for cable and Internet service."

Consumer advocates and competing media firms have opposed Comcast's proposed acquisition of NBC, claiming the new entity would have too much control over media content and distribution in several major U.S. cities. Comcast and NBC have made a number of commitments regarding media diversity and access for independent content providers, but Desai said those pledges are insufficient.

"While the companies have said they won’t engage in anticompetitive practices, Comcast has earned deep distrust. Comcast routinely raises rates, requires customers to buy packages of channels they don’t watch to get the few they do, and slaps stiff penalties on people who want to move to another broadband company for better service," Desai said.

"Allowing Comcast to take over the content by NBC Universal could mean consumers would pay higher prices and have fewer media choices,” she added.

The campaign includes a 10-by-22-foot mobile billboard with an image of a boa constrictor that resembles a TV cable wrapped around a TV set, with a tagline that reads "Don't Don’t Constrict Choice – Reject the Comcast Buyout of NBC.” The billboard will travel through the streets of Washington this week.

The next issue of Consumer Reports, published by Consumers Union, also includes an editorial citing the organization's concerns about competition and cost in the media marketplace:

“CU’s deep concerns about the proposed deal are about more than size. The merger would create a media conglomerate of incredible power and reach. Left to its own devices, Comcast/NBCU could manage and manipulate the creation and delivery of entertainment, news, and information to its liking. And Comcast/NBCU would be free to charge competitors higher prices to access its programming. Inevitably, those costs would be passed on to consumers."