Comcast Corporation (NASDAQ:CMCSA) has decided to voice its opinion against the critics of its $45.2 billion acquisition of Time Warner Cable Inc (NYSE:TWC). It has accused multiple companies of demanding undue business concessions in return for supporting the Comcast – Time Warner deal. It listed out some of the demands which included access to advanced advertising technology, increased carriage fees and nil charges for interconnection of web traffic.
Netflix, Inc., Discovery Communications Inc deny allegations of extortion against them
Comcast Corporation (NASDAQ:CMCSA) said that Netflix, Inc. (NASDAQ:NFLX) Chief Executive Officer Reed Hastings, who had initially supported the paid interconnection deal between the two companies, had changed his stance in light of the merger.
Hastings denied the charge telling that he was always against the notion of paid interconnection and was made to sign the deal due to lack of other options.
Discovery Communications Inc. (NASDAQ:DISCA) and Blaze are also among the list of companies that have been accused by Comcast Corporation (NASDAQ:CMCSA) of demanding business concessions in return for not opposing the deal. Both the companies, however, refuted the allegations against them.
Discovery stated that the company discussed the value of its content with its distributors regularly and Comcast was trying to shift the focus away from the real issue. Blaze stated that Comcast was trying to question the legality of genuine concerns raised by the merger deal.
Broadband dominance of Comcast Corporation has regulators worried
The mega merger was announced earlier this year and is waiting for approval from the Federal Communications Commission (FCC) and Justice Department. If the merger goes into effect, the combined force of the cable and broadband providers will command around 30% of the television market in the United States.
The cable part of the deal is not expected to have major repercussions but regulators are concerned about the broadband end of it. The deal would make Comcast Corporation (NASDAQ:CMCSA) the principal provider of high speed broadband in most of the urban areas in the country.