The American Cable Association, or ACA, a lobbying group for more than 700 smaller TV and broadband companies, sent a letter to the Department of Justice asking for an investigation into Comcast over alleged antitrust violations. Comcast’s smaller rivals in the cable industry claim the company uses its ownership of TV programming to harm competitors. Using his Twitter account, President Trump retweeted on Monday ACA’s concerns, adding that the lobbying group has “big problems with Comcast.”
ACA ASKS FOR DOJ INVESTIGATION: The American Cable Association has asked antitrust law enforcers at the Department of Justice to open an investigation into the business practices of Comcast-NBCU, "focusing on harms stemming from the dominant communications firm's control of cable systems, TV stations, and regional sports networks concentrated in some of the largest local markets in the country." The agency's request came in a November 6 letter to Makan Delrahim, Department of Justice's Assistant Attorney General for Antitrust. In the letter, ACA and its members "pledged to cooperate fully to assist in the investigation, including by providing information about Comcast-NBCU's practices." "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 President and CEO Matthew Polka said in statement. In a tweet on Monday, President Trump highlighted the ACA's request. "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,” the tweet read.
ANTITRUST CHARGE ‘WITHOUT MERIT’: In a statement to CNBC, Comcast said that, "We believe that ACA's letter is without merit and constitutes an inappropriate attempt to gain leverage in the commercial marketplace." The company added: "The video programming and distribution markets are incredibly competitive. New programmers and distribution platforms are offering consumers increasing choices on what and where to watch. At Comcast NBCUniversal, we are competing in this dynamic environment the way we always have – by continuing to innovate and conducting our business in compliance with antitrust laws and other legal requirements. Among other things, Comcast Cable has brought Netflix [NFLX} and YouTube [GOOG] to our X1 platform. And NBCUniversal has provided content to Hulu, Netflix, and hundreds of other traditional and over-the-top providers.”
PRICE ACTION: In afternoon trading, shares of Comcast are fractionally down to $38.22.
"Trump Effect" is The Fly's recurring series of exclusive stories that highlight stocks that are being impacted, or are predicted to be impacted, by the comments, actions and policies of President Trump and his administration.
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