In a public letter to both the Time Warner and Comcast, FCC said that they are holding the merge up deal that was made in between them. Comcast and Time Warner, together control most of the Internet services in the country. However, the companies said that they are in different regions and are not going to suppress the competition.
Critics have argued the merge up will result in keeping more than 35% of the people under umbrella of one company. And with the acquisition of NBCUniversal, Comcast was able to make it a one-sided war in the country. FCC reports that the other network providers were not able to raise the price.
The letter states,
* Killing competition. Most consumers already don’t have choices, and letting two huge companies merge won’t increase that. Smaller cable programmers have pointed out that the bigger Comcast gets, the harder it is for them to stay in business anywhere. And starting a new competitor? That’s basically impossible.
* Squashing innovation. Comcast, CU argues, can interfere with innovation in two key ways. One is by hindering companies like (famously) Netflix from trying new things online video distribution. The other is in hardware: there really is no competition in set-top boxes, and if one entity (Comcast) continues to dominate, there won’t be. Additionally, Comcast can squeeze out hardware platforms like TiVo and Roku by, for example, not permitting their content to stream on those devices. (Or not letting Comcast subscribers use them to access services like HBOGo.)
* Blocking media diversity. That the post-merger Comcast would control nearly all of the largest TV markets in the country (16 of the top 20, and plenty of smaller ones besides) doesn’t just demonstrate how many million people the deal would affect. It points to their gatekeeper power:
Because Comcast would control almost every key metropolitan market, video programmers would absolutely need distribution carriage through Comcast. In effect, Comcast could dictate what programs do or don’t get carried — not only in its markets, but across America. A nightly business program, for example, would not get off the ground if it were carried only in rural markets. It would need access to cable subscribers in the New York City region, for example — and those would be Comcast/TWC subscribers.”