Antitrust attorneys with the U.S. Department of Justice (DOJ) are nearing a recommendation to block a possible merger between telecom giants Comcast and Time-Warner Cable, reported Bloomberg.
Comcast is offering a $45.2 billion bid to merge with Time-Warner Cable to create the largest telecom company in the United State of America. However, DOJ attorneys think the proposed merger could turn out to be a bad deal for consumers. The attorneys are expected to turn in their recommendation early next week.
By absorbing Time-Warner Cable, Comcast will expand the company’s “broadband Internet and video footprint” to better compete against its industry competitors.
The Federal Communications Commission (FCC) hasn’t made clear their position on the merger. Law experts have noted that the FCC could be waiting for a court decision on the deal before detailing any specific stance.
Regarding the possible DOJ lawsuit, Comcast said federal attorneys haven’t a leg to stand on in filing a suit.
“There is no basis for a lawsuit to block the transaction,” said Comcast spokesperson Sena Fitzmaurice. The merger “will result in significant consumer benefits — faster broadband speeds, access to a superior video experience, and more competition in business services resulting in billions of dollars in cost savings.”
The DOJ needs to kill this deal. Mergers like this do nothing but lengthen the tentacles of giant corporations for the sole purpose of increasing profits. The company says its for the benefit of the customers, but telecom companies have been known to lie in the past.