Viewpoint

Here, a monthly perspective from Consumers Union on the latest challenges—and possible solutions—facing U.S. consumers today. See archived installments of Viewpoint.

Big, bad cable merger

A year ago, cable and Internet behemoth Comcast announced it wanted to become even bigger by acquiring fellow media giant NBC Universal.

Since then the companies have been seeking approval from federal regulators. Consumers Union believes that the answer should be no.

A combined Comcast and NBCU would instantly be a media colossus wielding unprecedented influence over the news and entertainment we see, and the price we pay to see it.

Consumers Union's deep concerns about the proposed deal are about more than size. The merger would create a media conglomerate of incredible power and reach. Left to its own devices, Comcast-NBCU could manage and manipulate the creation and delivery of entertainment, news, and information to its liking. And it would be free to charge competitors higher prices to access its programming. Inevitably, those costs would be passed on to consumers.

Talking heads

Comcast says it has no intention of driving out competition or engaging in other anti-consumer behavior. It's also pledging to invest in local news operations and nourish diverse voices in the media.

Comcast, however, has already earned deep mistrust. It's the largest cable company and the leader in an industry that routinely hikes rates, forces customers to buy packages of channels they don't watch to get the few they do, and assesses stiff penalties on customers who want to move to another broadband company for better prices or service.

It's not surprising, then, that Comcast was named the Worst Company in America this year by the readers of Consumerist.org, ConsumerReports.org's sister site.

The Comcast-NBCU deal depends on clearance by the Justice Department and the Federal Communications Commission. We're concerned that any changes to the proposed merger won't go far enough. Regulators must press the companies to ensure that all competitors, including potential online rivals such as Netflix and Roku, have access to the stable of all Comcast-NBCU programming with reasonable rates and terms. Regulators must also ensure that Comcast does not interfere with any lawful Internet traffic that its subscribers choose to access.

Should regulators choose to allow the merger to go through, it must be under strong terms that protect consumers, maintain competition, and ensure a diversity of media choices.