The New York Times editorial board came out with an op-ed yesterday urging the FCC and U.S. Justice Department to block Comcast’s $45 billion acquisition of Time Warner Cable. In it, the Times cautions against the ill effects a merger could have on Netflix.
By buying Time Warner Cable, Comcast would become a gatekeeper over what consumers watch, read and listen to. The company would have more power to compel Internet content companies like Netflix and Google, which owns YouTube, to pay Comcast for better access to its broadband network. Netflix, a dominant player in video streaming, has already signed such an agreement with the company. This could put start-ups and smaller companies without deep pockets at a competitive disadvantage.
In April, Netflix came out against the Comcast/TWC merger, arguing that it would give the company unprecedented power over high-speed Internet access, with that power creating “anti-competitive leverage.”
Comcast responded claiming no company has been more dedicated to openness of the Internet than them.