A coalition representing small and medium-sized cable operators has asked federal authorities to investigate Comcast on allegations that it is abusing its market power.
The American Cable Association (ACA), which represents more than 700 independent cable companies, has urged U.S. Assistant Attorney General Makan Delrahim to open a formal probe into Comcast’s business practices.
ACA President and CEO Matthew M. Polka said:
“By opening a formal investigation, the DOJ, which has already put Comcast-NBCU on notice, can take the next step to gather facts about the company’s activities and ensure consumers and competition are protected. Given the enormity of Comcast-NBCU’s market presence and incentive to engage in anticompetitive harm, such an investigation is fully warranted.”
The ACA’s complaint centers on Comcast’s control over essential local programming. The association points out that Comcast owns 11 local NBC television stations and seven NBC regional sports networks—assets the ACA calls “must-have” for many viewers and distributors.
The ACA also stresses Comcast’s competitive advantage from being able to package video, broadband and telephone services across its entire footprint. By contrast, the AT&T/Time Warner combination can offer a full bundle only where AT&T maintains a wireline network, limiting its ability to compete on equal footing in many markets.
“This means that Comcast-NBCU is likely to earn significantly higher average profit margins on switching customers than AT&T will, which in turn implies that Comcast-NBCU has dramatically increased leverage over programming prices compared to that of the AT&T-TW combination,” the ACA wrote in its press release.
Comcast had previously been subject to a consent decree dating to 2011, which imposed behavioral restrictions related to its carriage practices. That decree expired in January, and the ACA argues that Comcast continued to show “a willingness to harm rivals” even while it was in force.
The ACA’s letter emphasizes the group’s concern about Comcast’s potential to exploit its market position and the harm that could follow for competition and consumers. The association has a history of alleging unfair practices: in 2017 it accused Comcast of forcing smaller providers to include NBC-owned channels in their packages, increasing costs for those operators.
Comcast has denied any wrongdoing.
Interested in industry discussions on topics like this? Attend co-located events such as the IoT Tech Expo, Blockchain Expo, AI & Big Data Expo, and Cyber Security & Cloud Expo, which host conferences and exhibitions in cities including Silicon Valley, London, and Amsterdam.