The Federal Communications Commission and the Justice Department both gave their approval Tuesday to the proposed mega-merger between telecom giant Comcast and NBC Universal, operator of the NBC television network.
The Federal Communications Commission and the Justice Department approved Comcast Corp.’s deal to acquire control of NBC Universal from General Electric Co. on Tuesday, setting the stage for the cable giant to complete its acquisition shortly.
The Justice Department, which examined the deal for potential antitrust concerns, weighed in shortly after the FCC gave its approval, filing a proposed settlement with the parties in a Washington, D.C. federal court.
Many of the conditions imposed by the department appear similar to those set by the FCC.
Under the settlement, the companies agreed to license programming to online competitors of Comcast’s cable TV services, to abide by anti-retaliation provisions and to adhere to open-internet rules.
Among other things, the settlement also forces Comcast to relinquish its management rights to Hulu, an online video distributor in which NBC has an ownership stake.
The government says the deal “will maintain an open and fair marketplace” and the decision was met with cheers from the parties involved and the corporate community overall. But the size of the merger and the players involved have stoked controversy and concern over just how “fair” the final product will be and what the consequences of the merger will be for consumers and the future of policies like net neutrality.
The lone FCC commissioner to vote against approval of the Comcast/NBC merger said that it was “simply too much, too big” and openly questioned the deal’s “benefits for American consumer and citizens.”
“The conditions imposed will maintain an open and fair marketplace while at the same time allow the innovative aspects of the transaction to go forward,” U.S. Assistant Attorney General Christine Varney said.
FCC commissioners approved the deal Tuesday on a 4-1 vote, with Democratic FCC Commissioner Michael Copps voting against the deal. Mr. Copps is a vocal opponent of increased media consolidation and he maintained the Comcast-NBC combination wasn’t in the public’s best interest.
“In sum, this is simply too much, too big, too powerful, too lacking in benefits for American consumers and citizens,” Mr. Copps said in a statement explaining his opposition to the deal.
FCC Chairman Julius Genachowski called the various conditions imposed on Comcast to protect consumers and competitors “strong and fair.”
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