CEO DATELINE - American Cable Association complaint gets boost from Trump tweet
CEO DATELINE - American Cable Association complaint gets boost from Trump tweet
- November 13, 2018 |
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Walt Williams
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An American Cable Association request that federal officials investigate Comcast-NBCUniversal for possible violations of antitrust laws got a publicity boost Monday when President Donald Trump seemingly endorsed ACA's call in a tweet.
ACA sent a letter to the U.S. Department of Justice asking antitrust law enforcement to open an investigation into the media behemoth, formed from the 2011 merger between cable company Comcast and NBCUniversal. Antitrust conditions imposed on the merger expired earlier this year.
The association represents small- to mid-sized cable providers who worry that the company has unprecedented control over pricing of "must-have local programming."
"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," ACA CEO Matthew Polka said in a statement.
ACA picked up an ally Monday in Trump, who apparently saw the association's concerns highlighted on a Fox Business news segment that same day. https://fxn.ws/2TbP6rC
"American Cable Association has big problems with Comcast. They say that Comcast routinely violates Antitrust Laws. ‘These guys are acting much worse, and have much more potential for damage to consumers, than anything AT&T-Time Warner would do.' Charlie Gasparino," Trump tweeted.
Gasparino is a Fox Business correspondent who tweeted on Tuesday that sources told him that DOJ officials are reviewing the ACA letter and taking the allegations made in it "seriously." It is unclear whether at decision has been made to investigate the proposed deal, he added.
Comcast stocks tumbled after the Trump tweet. The company declined to comment on the allegations when reached by news outlets.
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