Assistant Attorney General Christine Varney's Briefing

01/20/11

A complaint was filed that alleges the transaction - originally written in a way that would allow Comcast to limit competitive efforts from other cable, satellite and telephone providers - was inadequate. Further, this allowance would have harmed competition, raised prices and also would leave an opening that would stifle digital competition. As part of the complaint, Varney explained, a settlement was proposed that would level the playing field for Comcast's competition. Further, she explained that these competitors were vital in the market simply due to the probability of being able to shape the sector while keeping pricing manageable; something that simply cannot exist in a monopolized sector.

Now, the settlement offers allowances that provide Comcast the opportunity to provide content, and specifically content by NBCU, to other online distributors provided they enter into a contract with any of NBCU's peers. Finally, the settlement also has clauses that ensure other distributors the opportunity to play a role via ''a full linear feed from NBCU''. The end goal, of course, is to ensure that competitive efforts are not stifled.

Comcast would be prohibited from forcing unrealistic terms onto competitors, thereby keeping the negotiation avenues open. A ''rule book'', so to speak, was also proffered that keeps retaliation efforts virtually absent. The FCC's compliance guidelines must also be incorporated and the online media site, Hulu, will acquire management rights that Comcast now has control over and ownership of.

Varney assured media representatives that the new approach ''results in effective, efficient and consistent remedies'' and reiterates it was a team effort that consisted of the Antitrust Division, the U.S. Department of Justice and the Federal Communications Commission.