Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: Senators urge ‘close review’ of Charter-TWC-BHN deals, (Feb 19, 2016)
Organizations Mentioned:Bright House Networks | Charter Communications | Time Warner Cable, Inc.
By John Curran,TR Daily
Senators Mike Lee (R., Utah) and Amy Klobuchar (D., Minn.)—the chairman and ranking member of the Senate antitrust, competition policy, and consumer rights subcommittee—have asked Attorney General Loretta Lynch and FCC Chairman Tom Wheeler to “closely review” Charter Communications, Inc.’s agreements to acquire Time Warner Cable, Inc. and Bright House Networks “to ensure that they do not impede new, developing options for consumers to receive video content or undermine independent programmers’ ability to access consumers.” The Senators made this request in a February 17 letter to the officials.
The FCC has been reviewing the merger agreements for several months. Today is Day 146 of the agency’s informal 180-day merger review close for the transactions.
In their letter, Senators Lee and Klobuchar said that “broadband is challenging the competitive status quo” in the delivery of video content by enabling the delivery of programming via the Internet and that the FCC and Department of Justice should look to the impact of the Charter-TWC-BHN deals on concentration of the broadband service market, and whether the deal would “increase Charter’s incentive and ability to interfere with online video distribution services.”
“Relatedly, it is important that this transaction does not make it harder for regional cable companies to compete,” the senators said. “If there are competitive concerns, you should require conditions that would alleviate the potential competitive harms.”
The senators also asked the regulators to take notice of parties that have expressed worry that the merger transactions will allow Charter to pay less for content from independent programmers or otherwise discriminate against them.
News: AcquisitionsMergers Antitrust