Comcast-Time Warner Cable Merger: FCC Puts Deal on Hold for Three Weeks
The Federal Communications Commission (FCC) announced last Friday that it has put a temporary hold on proceedings considering a merger between Comcast and Time Warner Cable.
The reason for the pause in the "shot-clock," the FCC says, is because it is not satisfied with responses from both cable companies in regards to FCC requests for more information. Dish Network, in particular, had filed for a motion to extend the filing time "on the grounds that Comcast had not fully responded to to the Commission's Request for Information and Data," according to an FCC public notice.
The FCC began its review of Comcast's $45 billion bid to acquire Time Warner Cable three months ago with the intention of determining if it is in the public's best interest. The commission imposed a 180-day deadline on itself, with Jan. 6 next year being the target date for completing a review. The FCC is currently in the process of collecting comments from the public, and although Oct. 8 was the deadline, the new date is now Oct. 29. The FCC says it plans to resume its 180-day countdown once the three-week pause is complete.
Comcast, meanwhile, says it will work with the commission to smooth over any bumps in the road.
"We will work with the staff to determine the additional information the FCC is seeking (including the document production that the FCC had asked us to delay filing) and will submit supplemental answers and documents quickly thereafter so that the FCC can complete its review early in 2015," Comcast spokeswoman Sena Fitzmaurice said in a statement.
Comcast has repeatedly defended its intentions to acquire Time Warner, saying that the two together would not stagnate and instead bring more innovation and broadband across the country. The FCC and many public agencies, however, feel that the combining of the No. 1 and No. 2 cable-TV providers in the United States could hurt competition and keep much-needed growth from taking place.
Several states have also voiced their uneasiness about the merger. New York and California both have independent panels conducting reviews. New York's Public Service Commission, for one, has said it will delay its decision on the matter until Nov. 13.
"Given the depth and breadth of the public record and the importance of the issues presented, the commission has accepted the extension of the period for review," PSC spokesperson James Denn said in an e-mail to Bloomberg.
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