Lawmakers Hesitant to Directly Slam Comcast-TWC Deal
Little talk of outright opposition to Comcast’s plan to buy Time Warner Cable has come from Capitol Hill so far, less than a week from when the deal was announced. Heads of the House Judiciary Committee and Senate Judiciary Antitrust Subcommittee have pledged hearings, and Sen. Al Franken, D-Minn., wrote a letter to the FCC, Justice Department and FTC asking for quick and detailed review (CD Feb 14 p3). But lawmakers stressed the importance of scrutiny and emphasized competition and the possibility of consumer harm. Observers critical of the deal told us that concern is politically one-sided -- Democrats are the ones issuing statements, by and large, not Republicans.
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Senate Commerce Committee Chairman Jay Rockefeller, D-W.Va., backs “thorough scrutiny” for a deal he said would raise many questions. “Of course, the threshold question must be whether the creation of an even larger video and broadband juggernaut results in greater choice and lower rates for consumers,” Rockefeller said in a statement. “This has not been my experience with previous mergers of this size. And at a time when the future of video is increasingly online, policymakers have to weigh very carefully the ability of big companies to leverage their control of the Internet to shape how Americans access and receive content and to limit new consumer-centric video services.” Rockefeller’s office declined to say whether such thorough scrutiny should include a Senate Commerce hearing.
"Millions of Americans rely on cable connectivity to receive the programs they love and to access the Internet at the fast speed needed as we conduct more of our lives online,” said Senate Judiciary Committee Chairman Patrick Leahy, D-Vt., in a statement. “I will closely monitor the response of the FCC and the antitrust authorities to this transaction.” Senate Commerce Committee member Ed Markey, D-Mass., said a deal “should be evaluated through the lens of what is best for fostering competition, ensuring choice in broadband, cable and telephone, and protecting consumers in Massachusetts and across America."
The Writers Guild of America East opposes Comcast/Time Warner Cable and wants to work with members including Markey, Leahy, Franken and House Judiciary Intellectual Property Subcommittee ranking member Jerrold Nadler, D-N.Y., to that end, Executive Director Lowell Peterson told us. The union has already contacted Franken, a union member, Peterson said. He said House Communications Subcommittee ranking member Anna Eshoo, D-Calif., is “pretty vocal” on such issues, as is House Commerce Committee ranking member Henry Waxman, D-Calif.
Sen. Bernie Sanders, I-Vt., is one of the rare members to have outright opposed the $45 billion transaction. He has said he opposes more media consolidation because it would mean “less local control, fewer outlets offering differing viewpoints and less ownership diversity.” Sanders posted a poll on his website asking people whether regulators should approve such a deal (http://1.usa.gov/1gShQwQ). Peterson referred to Sanders as “already out front” on the issue.
"There is concern in the labor movement,” Peterson said. “We might get our members activated. We did that last time” when Comcast bought control of NBCUniversal a few years ago, he said. “It can be effective."
The Writers Guild of America, East worries that a bigger media company would make it harder for union members to negotiate, Peterson said. A larger Comcast could be especially “recalcitrant,” he said referring to “behemoths” thumbing their noses at employees’ votes to unionize. The guild is eyeing the FCC as much as anywhere and plans to file there soon, Peterson said. It’s talking with other unions about possible joint statements in recognition of broader concerns, he said.
So far, there has been “relatively little reaction from Republican offices,” observed Parents Television Council Director of Public Policy Dan Isett, who also opposes Comcast/Time Warner Cable. Isett called the silence “sort of peculiar” and cited Comcast’s “near unmatched lobby power” in Washington as a big potential reason explaining that silence and less of a reaction from Democratic offices than he might have expected. “It’s possible some of the offices are taking stock,” he said, citing the recent federal holiday and congressional recess this week. Isett said it’s “safe to say there will be a rather large coalition of interest groups in opposition to the merger,” expecting it to occupy his own outreach to members in coming weeks. Isett called the merger “very large, very horizontal” and said it will “fundamentally change the communications marketplace.”
Sen. Chuck Schumer, D-N.Y., spoke to Comcast Executive Vice President David Cohen last week about Comcast preserving Time Warner Cable job commitments in New York. “I urged Mr. Cohen to maintain the entire TWC workforce in New York and consider adding to their presence -- and while there was no guarantee -- my expectation is that Comcast will invest in New York -- as they did after the merger with NBC -- and the results of the merger will be positive for New York,” Schumer said in a statement last week. Media reports said Schumer, who had no comment for this story, recused himself from legislative action on the deal, because his brother represented Time Warner Cable at the Paul Weiss law firm. (jhendel@warren-news.com)