Earlier today, the FCC and the Justice Department ruled in favor of the merger between Comcast and NBC Universal, creating one of the largest media conglomerates in the world and setting an unadvisable template for one company to combine the power of media and the Internet.
Sen. Al Franken, who has been a lonely critic of the proposed merger, released a caustic statement on the FCC action today:
“The FCC’s action today is a tremendous disappointment. The Commission is supposed to protect the public interest, not corporate interests. But what we see today is an effort by the FCC to appease the very companies it’s charged with regulating. With approval of this merger, the FCC has given a single media conglomerate unprecedented control over the flow of information in America. This will ultimately mean higher cable and Internet bills, fewer independent voices in the media, and less freedom of choice for all American consumers. And it will leave Minnesotans at the mercy of a shrinking number of very powerful media conglomerates.
We count on competition in this country to keep corporations in check, and we have designed antitrust laws to ensure that companies do not become too big or too powerful. I fear this is only the first domino in a cascade to come. By approving this merger, the FCC may have just given a green light to AT&T and Verizon to pursue similar mergers with ABC/Disney or CBS/Viacom. But, this does not mean the fight is over. A growing number of Americans stand behind me ready to fight any further media consolidation of this kind.”
This is the big point. If Comcast and NBC can combine, Verizon and AT&T have a pathway to merge with a media comglomerate and centralize control of a large sector of the market. The explosion of the Internet seemed to be a way to create diversity in the media, with a proliferation of new voices and perspectives. But a Verizon/CBS/Viacom could use the weak net neutrality proposal to deliver their preferred content and slow down competitors on their networks, shrinking the number of voices that can reach large audiences. Like Comcast and NBC, these companies would control the content, and the means to deliver that content. This is no different than movie studios owning the theaters, something that an antitrust ruling rightly took down in 1948. The deal, says Josh Silver of Free Press, “sets the stage for Comcast to turn the Internet into something that looks like cable TV.”
Silver adds that “Comcast-NBC could soon hike up rates, take away your favorite channels or even stop you from watching your favorite shows online.” There’s evidence that Comcast has done this with respect to Netflix by forcing what amount to bribes in exchange for access. This threatens the principle of a diverse media, one which has faded away in recent years. In addition, Comcast will have a means to jack up the prices cable operators pay for NBC-affiliated product, and those higher fees will be passed on to consumers.
It’s a really bad day for those opposed to media consolidation.




31 Comments

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This is just what you expect from this administration. Someone rich and powerful makes an outrageous proposal that will give them monopoly power, and the administration stooges work up some conditions that will make it just great, so that the powerful get only 90% of what they want, and the public gets screwed.
And they make us PAY to watch. The United States of Monopoly!
Did anybody really expect anything different from Obama inc.?
Every day in America is a really bad day for anyone who isn’t a billionaire or one of the politicians they own. Another day, another sell-out, and another knife in the back of democracy.
Nope! We’ve written letters, called, sign petitions and everything to address our leaders. The response: sit down and STFU!
And get drug tested…
Ha! I think they are all in need of a drug test. They have to be whacked out on something to make these laws and not feel remorse.
Interesting post here. Excerpt:
Elsewhere, I see an antitrust blogger said this was unsurprising. That raises a few questions: what did the antitrust community expect? Do we know what the *legal* merits of the decision were?
No..
The Department of Justice is a farce. Might as well not have it.
More like this
|^^^^^^^^^^^||____
| The STFU Truck |||”"‘|”"__,_
| _____________ l||__|__|__|)
…|(@)@)”"”"”"”**|(@)(@)**|(@)
Oh yeah! Just like that. A truck rolling across America.
Al talks a good fight.
I have seen this coming for a long time… The Big media concentrates and the Customers/us citizens get the truck… Run over .. come out looking like road pizza….
I have some for sale……/s
They were just making those “tough” decisions like you, Al. Making the toughest decisions.
And how fitting all this comes on the same day he takes a hit at all our over-regulations, some unnecessary, poorly done, etc etc. Nice fit, Id say.
A gutted and gutless anti-trust division at DoJ (a division, along with Civil Rights and the OLC, that Bush explicitly aimed to geld) and at the FCC. Once again, Obama shows his true corporatist colors.
My thought also
Increased consolidation makes more money for a few at the expense of the pocketbooks and choice of the many. Lacking choices makes it much harder, of course, for the market’s infamous invisible hand to work, which is what fans of unfettered, unregulated market capitalists desire almost as much as money. If Mr. Obama expects either Republicans or these corporations to demonstrate sustained gratitude for this giveaway, he doesn’t really understand power, he’s just a fan of it.
Increased consolidation will also make it easier to implement such things as mandatory individual licenses – akin to driver’s licenses – for Internet “driving”. Net neutrality my backside.
This way you’ll get the news that they think you should know, just like fuax. Dumb down______________;)
We have to start asking our illustrious “leaders” the embarrassing questions: who got paid off and how much? How much money goes into Obama’s pocket for this sell-out? How about Holder?
American politics today, more so than ever before, is all about the money, and exclusively about the money. Tax cuts for the wealthy? What did Obama get paid for that? No public option? How much went into Obama’s secret offshore bank account for that one? Never-ending war in Afghanistan and everywhere else? What’s Barry’s slice of that pie?
It’s policy for profit. The fat-cats hand out the bribes and the crooked politicians lick their boots. The rest of us are cowering in our cardboard boxes and dumpster-diving to survive, but that’s OK as long as the corporatists are fattening their asses in one of their several mansions.
Some days I pray for a meteor impact on DC.
emptywheel is upstairs!
Blindspots and Fear of the Working Class
That’s the nature of capitalism. Corporations get bigger and bigger and competition gets smaller and smaller. It’s all laid out in Marx, if anyone in the U.S. bothers to read him.
Folks the same day the Prez takes to the Wall Street journal to pen an OP-Ed about lessening regulations his FCC delivers this blow to the American public……
Like I have always said…by the time Obama is done the Dem party will return to it’s Dixiecrat roots.
Awww isn’t this adorable.
After his last sell out Al’s pretending to be Mr Libby the Liberal.
Just wait til the next tough vote where he twists his own arm behind his back and blue b**ches about how hard it is for him to make a “pragmatic” vote.
Can anyone name ONE THING Eric Holder have done as Attorney General that has been a benefit to the people?
Agree with everything you and Sen. Franken say . . . this is a most horrible precedent, right up there with Citizens v. United . . .
That’s some kind of pipe dream if anyone thinks the ‘regulators’ or anti trust divisions will impose any semblance of regulation OR control over media or the internet . . .
Obama today (yesterday?) said he was looking to LOOSEN laws/regulations, supposedly in the interest of CREATING jobs . . . what a load of bullshit THAT was.
Sadly, nope . . .
This is another indicator of the consolidation of wealth and power into the hands of a very few. The level of control held by fewer and ever merging corporations may soon to reach an apex. Resulting in a very select and small group of huge and influential corporations dictating policy to the public with government backing. Yet they strive on to the pinnacle of free market solutions, hegemony, to rule all and have no competition, free to extract unhindered profit.
The sycophancy of the government to these corporate “citizens” is indicative of the hand in hand relationship that exists more often than not in today’s globalized U.S. It falls down to the fact that the perceived role of government is none other than that of enabler and facilitator of private corporate enterprise.
They always “approve” everything that the elite want. They always act like some group or body is going to decide and then they always , one hundred percent of the time, allow the merger. How many times are we going to sit around and act like government is going to “approve” anything they do. They TELL government to inform the people that this is what THEY are going to do next.
Our opinion of how we want this country run and how much power of voice and infrastructure can belong in the hands of a few is zip. We are ruled by the ONEPERCENT and we have zero voice. Government has been bought and branded the People Control Center for private industry with Goldman Sach’s at the helm. Government as a body of deciders that work at behest of the populace is gone.