Comcast-NBC Universal Deal Raising Questions on Hill

“This is one of the larger consolidations in the telecom/media space in history, and it is a matter of public interest, [and] it’s a matter of interest to those of us involved in telecommunications policy,” said House Communications Subcommittee Chairman Rick Boucher, D-Va., in an interview. Boucher also outlined his legislative priorities for the new term, including work on a spectrum inventory, Internet privacy and the Universal Service Fund.

Four congressional bodies will study the Comcast-NBC deal. The House Communications Subcommittee and the Senate Antitrust Subcommittee both plan hearings Feb. 4. The House hearing, to be held in the morning, will involve Comcast CEO Brian Roberts and NBC Universal CEO Jeff Zucker, Boucher said. The Senate Antitrust Subcommittee has also invited the executives to its afternoon hearing. The House Judiciary and Senate Commerce committees also have jurisdiction over the merger, but they haven’t announced hearings. The Senate Commerce hearing may not happen until a month after the first two hearings, and it may look more generally at video competition, said a Hill source.

Congress’ role in mergers is to raise awareness of possible issues, said a Hill source. For example, members may send a letter with recommendations to the Department of Justice and the FCC, the source said, saying that usually happens about two months after hearings. Congress can use its bully-pulpit power to push agencies, and if it’s “really unhappy” with a deal can threaten legislation on particular issues, said Legal Director Harold Feld of Public Knowledge. Justice and the FCC don’t always follow the Hill’s recommendations. Members of Congress expressed opposition to the EchoStar-DirecTV and the XM-Sirius deals. The satellite TV merger fell through, but the radio deal took place.

By questioning the companies’ executives at hearings, “we serve as useful proxies for the public in highlighting what may be issues of concern [and] highlighting public benefits that can flow from the company,” Boucher said. That “serves not only the interest of the public, but also the interest of the two companies themselves.” Congress doesn’t have direct authority to approve or reject the deal. But commentary from the hearings probably will be considered by the FCC and Justice Department, he said.

Boucher wouldn’t preview any specific questions for the companies, but said “members are going to be interested in the extent to which there is assurance that the acquisition of an entertainment company by Comcast does not in any way restrict the availability of entertainment content for distribution among Comcast’s competitors.” But “to some extent, existing law prevents that from happening,” he said. And based on private conversations with Roberts, Boucher said, he’s “confident” that’s not Comcast’s intention.

Some members believe the Comcast-NBC merger could fuel similar deals between service providers and programmers, said Hill sources. Themes of questioning are likely to include the deal’s effects on Comcast’s competitors and on program producers that want to get on its platform, and what it means for Internet video services like Hulu, partly owned by NBC, Hill sources said. A source said to expect an emphasis on the deal’s effects on consumers, including on their bills. What the deal means for retransmission consent agreements probably will be a hot issue, Feld said.

Boucher said he hasn’t been lobbied much on the merger, except for a call from Comcast seeking to set up a private meeting with Roberts. The two have talked over the phone and for about an hour in the congressman’s office, Boucher said. Other Hill sources also said there had been little lobbying activity recently, after a big push by Comcast and NBC immediately when the deal was announced.

Lobbying should heat up closer to the hearings, said Vice President Ross Lieberman of the American Cable Association. The association wants to make Congress aware of potential harm to competitors and consumers, he said. The cable group and representatives of the satellite industry, small telcos, writers guilds and public interest groups raised concerns about the deal in a letter this month to legislators and President Barack Obama.