Proposed Comcast-NBC Merger Must Benefit Consumers, Says FCC Chairman

By Benny Martinez
University of New Mexico/Talk Radio News Service

Federal Communications Commission (FCC) Chairman Julius Genachowski told members of the Senate's Commerce, Science, and Transportation Committee that when reviewing the proposed Comcast/NBC Universal merger, consumer interests will be held in the highest regard.

Comcast, the country's largest cable and broadband company, announced in December 2009 that it planned to take over NBC Universal. Critics wondered whether the merger would create a media mogul that simultaneously would have the power to produce some of America's most popular entertainment, along with the ability to control the nation's access to it.

Genachowski said the FCC is focusing on preventing the merger from not only increasing prices for customers, but also reducing the amount of content they would have access to.

The focus on protecting consumers is one of three main pillars the FCC and Congress are hoping to see materialize from the prospective merger. In addition, Genachowski said the evolving nature of modern media will also be considered in the FCC's analysis, along with the stability of competition in the market.

"The enduring values remain what they were, promoting effective competition, protecting and empowering consumers, ensuring that there is innovation and promoting investment," Genachowski said. "Our focus will be on making sure that those values, those goals are achieved."

Aside from his remarks on the merger, Genachowski said the FCC is working to develop policies that would extend universal broadband to urban and rural America. According to the Chairman, these initiatives would ultimately enhance global competitiveness, create jobs and empower consumers.

Antitrust Committee debates Delta and Northwest Airlines merger

The Senate Judiciary Committee Subcommittee on Antitrust, Competition Policy and Consumer rights today held a hearing looking at the proposed merger between Delta and Northwest Airlines. Chaired by Senator Herb Kohl (D-WI), Committee members debated whether the merger would be detrimental to consumers and to the economy by eliminating market competition in the airline industry, and limiting airline choices for prospective flyers.

The panel of witnesses at the hearing included President and CEO of Northwest Airlines Douglas Steenland and CEO of Delta Airlines Richard Anderson. Anderson and Steenland argued that their merger would not eliminate choices for consumers because their companies’ flight paths complement one another. Also, the CEO’s argued that job loss as a result of the merger would be small. They stood firm in their stance that the market, their respective company’s incomes, and the airline industry as a whole, would be better off as a result of the merger.

Their sentiments were met with both skepticism and support. Some senators, such Ranking Member Hatch (R-UT), described the merger as one that would improve the economy and reward flyers with better service. Others described the merger as one that could undermine the entire airline industry, and one that would influence other mergers in the future.