In a written statement the Federal Communications Commission Chairman had the following to say: “The proposed merger would have posed an unacceptable risk to competition and innovation, including to the ability of online video providers to reach and serve consumers,” After regulators expressed their concerns Comcast dropped its bid. In an effort to underline the importance of Internet access the Federal Communications Commission released new “Net Neutrality” rules in February. These rules are meant to help avoid situations in which the broadband providers end up charging for “fast lane access” or favoring some content.
According to different analysts this could have been the case if the companies would have merged. However, Comcast disagrees. The company always considered this scenario in which regulators would oppose the merge and took preventive measures. While referring to the government’s opposition to the deal Brian Roberts, Comcast chairman and CEO, said in an interview on CNBC the following: “We always structured this deal in a way that would enable us to walk away.”
While some might consider this a victory the truth is that cable companies are likely to look for a way to keep combining so that they can handle the rising costs of the movies, shows and sports they show to their subscribers.
