Proposed Comcast-NBC Universal Deal Raises Serious Anti-Trust Concerns

Contact: Candice Johnson, CWA Communications, cjohnson@cwa-union.org and 202-434-1168

Washington, D.C. -- The proposed merger of Comcast and NBC Universal raises real anti-trust concerns. If approved by regulators, this deal would create a mega-media company, one with the market power to determine what programs get aired and how much consumers must pay to view programming in every media outlet: cable, television and especially the Internet. This mega-company would control one out of every five viewing hours in the United States.

This mega-merger clearly spotlights the dangers of media consolidation in the Internet Age.  

Comcast is not only the nation's largest cable company, with 24 million customers, but it has 15 million Internet users and controls most must-have regional sports programming. If it takes on NBC Universal, it adds a major television network, 27 local televisions, cable channels including CNBC, MSNBC, Telemundo, Bravo, USA Network and more, plus Hulu, a growing stop especially for households under age 35.        

This vertical integration of two very different companies – one controlling distribution and another controlling content – would give the merged company leverage over both in broadcast and network television and the market power to control pricing of content on the Internet. It clearly would threaten competition in the distribution of content and programming.

Comcast also has been cited for anti-democratic corporate governance processes. Comcast's chief executive officer has super-majority voting rights at the company, despite owning just 3 percent of stock. Comcast has been criticized by investor and public interest groups for refusing to implement the one share-one vote policy that nearly all major corporations use for shareholder decisionmaking. If Comcast is permitted to take over NBC Universal, this same undemocratic structure could be transferred to the new mega-media company, giving one person control over the dominant source of cable, television, Internet and media programming.   

Comcast also has a long history of violating workers' rights, firing workers who want union representation, refusing to bargain fairly for contracts, running aggressive campaigns to decertify unions and much more. CWA represents about 2,000 Comcast workers and about 2,500 NBC-Universal broadcast technicians and other workers.

CWA urges careful and close review of this proposed merger.