Comcast-NBC deal draws more criticism

Opposition is growing against the mega-merger between Comcast and NBC Universal announced earlier today.

Rep. Maurice Hinchey (D-N.Y.) circulated a letter to colleagues, asking them to sign letters to the Federal Communications Commission and Justice Department in protest of the proposed merger.

"If this deal is approved, it will further consolidate a U.S. media industry that is already controlled by a handful of corporate conglomerates," Hinchey said in the letters to FCC Chairman Julius Genachowski and Attorney General Eric Holder. "A Comcast-NBC conglomerate would own the nation's largest cable systems, one of the nation's largest networks, 27 broadcast television stations, 14 national cable channels, seven production studios and several of the fast-growing Internet properties. This widened control over the public's access to information would have extremely negative consequences."

The deadline for members to sign the letter was 3 p.m. today, according to a copy obtained by Hillicon Valley.

Other lawmakers, including Reps. Henry Waxman (D-Calif.) and Rick Boucher (D-Va.), who lead the House Commerce Committee and the technology subcommittee, respectively, have said they will closely evaluate the deal and will hold hearings on the matter.

Comcast today outlined "public interest commitments" to try to lessen the fears voiced by some consumer advocacy groups and competitors, who say the merger would give one company too much power over media content and distribution. Proponents of the merger say those fears are unfounded because the media landscape is very competitive and consumers have many options when receiving entertainment programming.

Under the deal, Comcast will acquire NBC Universal, which is valued at $30 billion, to own a 51 percent stake in the combined company.

If allowed to merge, the companies pledged to continue broadcasting free over-the-air television on NBC and Telemundo networks. Comcast said it would add new, independently owned channels to its cable line-up. The company said the content of NBC's news and public affairs programming would not be influenced the parent company's interests.

But consumer advocates call those commitments "laughable."

"They're essentially saying, 'We voluntarily agree to abide by the law,'" said Joel Kelsey, policy counsel at Consumers Union. "Those are concessions?"

Jeff Chester, who runs the Center for Digital Democracy, called the commitments "pathetic."

"Comcast’s memo today says nothing on the key, and crucial, issue of network neutrality and online programming access," he said. "Nor are there any safeguards for privacy and interactive ads, meaningful concrete funding commitments for local and national news, and support for truly diverse (non-Comcast/NBCU owned) minority programming."

Free Press, Public Knowledge and Media Access Project have been fighting hard against the deal before it was even announced.

The FCC, as well as either the Federal Trade Commission or DoJ, will have to approve the deal and could impose its own concessions (although the FCC's ability to do so is more limited). The review could take a year or longer to complete.

Update (5:55 p.m.): House Judiciary Committee Chairman John Conyers said he will soon hold hearings on the proposed merger. 

The merger "between the country's oldest broadcast network and it's largest cable operator would create a global entertainment company combining content creation and distribution at an unprecendented scale," he said. "A merger of this magnitude involves a complex regulatory process and heavy public scrutiny. The Committee will consider the benefits of potential advances in content delivery and the impact on consumers."

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