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Report: Comcast, Time Warner to meet with regulators about merger

Regulators are concerned the merger may result in a mega cable and broadband company that wields too much power.

By Doug G. Ware

WASHINGTON, April 19 (UPI) -- Representatives of Comcast and Time Warner Cable are reportedly set to meet with Justice officials for the first time this week, in an effort to hammer out details that will push through their proposed $45 billion merger.

It has been more than a year since the cable television subscription giants announced the plan to join forces. But the deal has yet to be approved and federal regulators are concerned the resulting company would wield too much power in the national Internet broadband market.

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Regulators from the U.S. Department of Justice and Federal Communications Commission are nearing the final critical stages of evaluating the planned merger.

The Wall Street Journal reported Sunday that a meeting between the cable companies and Justice officials is set for Wednesday. The meeting would be the first time company representatives were involved in direct discussions with regulators. The Journal report said discussions would involve potential negotiations aimed at alleviating regulators' concerns -- which would indicate the Justice Department has yet to make a firm or final decision on the matter.

A merger of the nation's two largest cable providers, regulators fear, may result in a provider that has too big a market share and wield too much power over industry pricing and practices. They also believe such a company's presence may stifle new companies entering the market.

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The Justice Department is tasked with ensuring that antitrust laws are not broken, and the FCC is charged with making whatever determination is in accordance with the public interest.

Exactly what concessions the cable companies may offer are not yet known, and a meeting this week might possibly be the first of several needed to gain federal approval, analysts say.

RELATED Time Warner Cable: No indication DOJ will block Comcast merger

Friday, Bloomberg reported that Justice antitrust attorneys are leaning against the merger because they don't believe one mega cable company is in the public's best interest. Time Warner responded by saying it has received no indication Justice regulators are planning to block the merger.

The attorneys will make a recommendation to senior Justice authorities, who will then make the final decision.

A denial of the merger would be a significant setback for Comcast, which is seeking to bolster its cable assets in large U.S. markets like New York City and Los Angeles -- markets that are now largely served by Time Warner.

It is not yet known whether the FCC is currently leaning in favor of or against the acquisition, Bloomberg reported. Spokespersons for both Comcast and Time Warner have said there is no reason for federal regulators to block the merger.

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If regulators require Comcast to operate in accordance with recently-passed "net neutrality" laws, regardless of whether they hold up in court, the Philadelphia-based provider might abandon the acquisition, sources told the Journal. If it does, it wouldn't owe any money to Time Warner.

Justice officials are also reportedly examining Comcast's 2011 acquisition of NBC Universal, in which regulators mandated concessions from the company before approving that deal.

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