Senator Franken Calls for Antitrust Investigation of Comcast
Senator Al Franken (D-Minn.) has called for an investigation into Comcast for exerting control of NBC before the government has completed its antitrust review.
In a recent letter to Assistant Attorney General for Antitrust Christine Varney, Franken raised major concerns about Comcast’s actions:
"Comcast has every right to promote its business and this merger…It does not have the right to effect that merger absent explicit federal approval, or indirectly control or influence NBC Universal until that approval is granted. I urge you to investigate this conduct."
At issue is Comcast's announcement of a new management team for NBC-Universal last Wednesday, before the federal review is complete. Franken suggested that the move may be a direct violation of the Hart-Scott-Rodino Antitrust Improvements Act, which prevents merging companies from "transferring control" until after government review.
Franken elaborated on the consequences of a potential antitrust violation:
"Comcast's announcement may not be a clear-cut case of 'gun-jumping' but that he thinks it merits 'a serious inquiry into the nature of Comcast's premerger control over NBC Universal and the impact that control may have on competition in the marketplace.'"
As expected, Comcast defended the announcement of the management team as "common, proper and expected."
The last episode is only the latest in a series of concerns about the Comcast-NBC deal and the effect it will have on the marketplace and consumers. The deal is widely unpopular with consumer groups, and could cost users up to $2.4 billion in higher television bills.
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