The chorus of voices against the proposed $45.5 billion Comcast–Time Warner Cable merger just got a little more organized. A group of corporations, public interest groups and unions have joined forces under the blunt name “Stop Mega Comcast” Coalition to convince regulators to reject the proposed merger.
The group’s most compelling argument points to the fact that Comcast will control 35 percent of the broadband Internet market and one-third of paid television subscriptions in the United States. This would allow Comcast to raise prices arbitrarily at the expense of consumers and content creators. Comcast’s influence would enable the corporation to demand higher fees from content providers who would pass the increased costs to consumers.
Sen. Al Franken, D-MN has also spoken out against the proposed merger. In an interview with CNN, Sen. Franken echoed the group’s concerns, adding that the lack of outrage from other major media companies was out of fear of retaliation, not acceptance of the proposal.
Sen. Franken’s reference is warranted due to Comcast’s history of retaliation. To demonstrate this point, Netflix released documents illustrating their users’ streaming speeds on Comcast during their direct connection contract dispute. The graph demonstrates that speed gradually dropped during the negotiations, and it jumped nearly 50 percent after the deal was reached.
Despite their compelling arguments, neither the “Stop Mega Comcast” Coalition nor Sen. Franken have the power to decide the merger’s fate. That decision is up to the Federal Communications Commission (FCC) and Department of Justice (DOJ). In order to hear a variety of opinions, the FCC has accepted public comments on the merger since earlier this year.
However, the merger’s opposition may be falling on deaf ears, as both corporations have considerable influence in Washington. The FCC is to determine whether the merger is in the public’s best interest. However, FCC Chairman Tom Wheeler is a former lobbyist for the cable industry. His past role may bias the FCC decision at the expense of public interest. In addition, Comcast and Time Warner spent $19,007,680 on lobbying and campaign contributions in the 2014 election cycle.
DOJ and FCC regulators must reject this deal in order to protect consumers. If the merger is approved, the already non-competitive cable and Internet markets will worsen. One company controlling such a large share of the market will stifle innovation and raise prices, a fate that Americans cannot afford. After all, the U.S. already lags behind European and Asian nations in Internet download speed, putting us at an economic disadvantage. In order for the U.S. to remain a technological innovator, we must ensure that our Internet utilities promote progress, not profits.