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Comcast faces NBC merger complaint

by Ira Teinowitz In Washington  |  Published March 8, 2012 at 8:21 AM
ComcastNBCUniversalGavel.jpgProject Concord Inc., a new company that intends to offer video over the Internet, has become the first Web content provider to accuse Comcast Corp. of not complying with a condition imposed on its $30 billion acquisition of NBC Universal Inc.

Project Concord claims that Comcast has failed to make NBC Universal content available at a reasonable price and is demanding binding arbitration.

Regulators, in approving Comcast's deal for control of NBC Universal in January 2011, were concerned that Comcast might have incentive to withhold NBC Universal programming to rival cable operators and over the Web, and therefore imposed several conditions to ensure that didn't happen.

They required Comcast to provide programming at the same rate as NBC's "peers" -- meaning pricing similar to what rivals would pay for ABC, CBS and Fox programming. They also required binding arbitration in disputes in certain instances.

Two weeks ago, Comcast, in its first annual report to the Federal Communications Commission about its compliance with the conditions, said it received one request for binding arbitration of a licensing dispute, but didn't identify where the request came from. Comcast said that despite the request, it remains in talks with the provider.

FCC documents subsequently made clear that Project Concord filed the arbitration request. The FCC documents also suggest a disagreement over exactly who gets to view the peer contracts that is holding up the arbitration.

Project Concord said Comcast is trying to alter the normal agency procedures in which the data on Project Concord's contracts with other carriers would go only to Comcast's outside counsel and outside consultants. Comcast also wants that data to be viewable by in-house counsel, Comcast executive management and employees negotiating the contract.

Project Concord suggested Comcast's request is unnecessarily delaying arbitration and called on the FCC to reject the request.

Project Concord officials did not return several requests for comments.

A Boston.com story in January reported that the company's founders, Andrew Prihodko and Sharon Peyer, had formed the site with support from venture capitalist Andy Marcuvitz.

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Tags: ABC | Andrew Prihodko | Andy Marcuvitz | arbitration request | CBS | Comcast Corp. | FCC | Federal Communications Commission | Fox | meger conditions | NBC Universal Inc. | Project Concord Inc. | Sharon Peyer

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