Netflix Enters Plea for FCC to Halt Comcast and Time Warner Cable Merger
Online video streaming company Netflix filed a comment calling for the Federal Communications Commission to deny Comcast's $45 billion purchase of Time Warner Cable. Netflix entered the comments Tuesday before the FCC's deadline for input.
A 256-page document filed from the Emmy-nominated site says the acquisition will give Comcast too much control of the Internet and too much incentive to suppress online video competitors such as Netflix.
This is not the first confrontation between Comcast and Netflix. The cable provider mandated that Netflix pay a "terminating access fee" to secure a non-degraded signal to customers. A lower-quality Internet signal would likely lead users to cancel subscriptions to online-only content providers like Netflix.
"In Netflix's experience, there are four ISPs that have the market power to engage in degradation strategies to harm [online video distributors]," Netflix said. "Two of those four propose to merge in this transaction. Consequently the proposed merger would significantly strengthen the harms to consumers and to Internet content distributors."
Comcast argued that Time Warner Cable and Comcast do not overlap geographically and therefore it does not interfere with any anti-trust laws. But Netflix countered saying that the FCC previously ruled that AT&T and MediaOne divest much of their broadband ownership before allowing the merger.
Comcast's deal to take over Time Warner was expected to be completed by the end of the year, but now the giant company estimates it will get approval in 2015. The delay will likely be due to FCC's questions about the merger and their investigation into whether Comcast does intentionally degrades Internet signals for competitors like Netflix.
At the close of the comment period, Comcast announced that despite some complaints they had received more than 400 comments from individuals and businesses like Cisco and TiVo in support of the deal.
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