U.S. Asks Judge to Approve Proposed Comcast-NBC Takeover Settlement

The U.S. Justice Department urged a federal court to approve the settlement outlining conditions for permitting Comcast Corp. (CMCSA)’s takeover of NBC Universal in response to a judge’s threat to block the deal.

The Justice Department defended an “alternative arbitration mechanism” through which online video distributors could get content from Comcast-NBC following criticism last month from U.S. District Judge Richard Leon in Washington. Leon said at a July 27 hearing he was concerned that an arbitration process to be overseen by the department wouldn’t allow appeals.

The process, which would use an outside, neutral arbitrator, provides a “speedier and less costly alternative,” the Justice Department said in court filing today. The online video distributors would still have the option of arbitration overseen by the Federal Communications Commission, whose decisions can be appealed, according to the filing.

Comcast’s proposed acquisition of NBC Universal won approval Jan. 18 from U.S. regulators, under an agreement with the FCC and the Justice Department that imposed conditions designed to protect the emerging online-video market. The settlement is pending final approval by Leon.

“I’m giving you fair notice I am not sure I am going to sign this, ” Leon said at the July 27 hearing. “This not a fait accompli, not in this court.”

To contact the reporters on this story: Sara Forden in Washington at sforden@bloomberg.net; Jeff Bliss in Washington at jbliss@bloomberg.net.

To contact the editors responsible for this story: Michael Hytha at mhytha@bloomberg.net; Mark Silva in Washington at Msilva34@bloomberg.net.

• LinkedIn
• Google +1
• Print
• QUEUE