Who'll mind the mergers?
FTC may dump media oversight
For decades, antitrust toppers at Justice and the Federal Trade Commission have shared the job of eyeballing Hollywood merger applications. Some go to the FTC for review, others to Justice. A little arbitrary, perhaps, but everyone has gotten used to the game.
Hence, some Capitol Hill pols went ballistic upon learning of the restructuring plan quietly drawn up by FTC chair Timothy Muris and Assistant Attorney General Charles James and unveiled Jan. 17. The maneuver would take the FTC entirely out of the loop when it comes to media/entertainment mergers. Justice would have singular authority in this arena, while the FTC would handle other industries, such as energy and health care.
At the last minute, staffers for Sen. Ernest Hollings (D-S.C.) derailed a press conference scheduled to announce the new policy, sternly reminding Muris and James that Congress must be notified before such a significant change is made.
Realizing their misstep, Muris and James abruptly called off the press conference and announced they would meet with Capitol Hill staffers Jan. 23.
Consumer advocates say it's dangerous to remove the FTC from the process, since the independent reg agency is controlled by a bipartisan, five-member commission.
Sure, the GOP enjoys a 3-2 majority at the FTC, but at least there are two Dems. That compares with the even more reclusive Justice Dept., which has a direct pipeline to 1600 Pennsylvania Ave.
The deal most immediately impacted would be the Comcast/AT&T Broadband merger. As it stands now, the mega-cable marriage would be reviewed by the FTC, which has developed something of an expertise in the area of cable. But if Muris and James get their way, the Comcast bid would be shipped over to Justice.
Insiders at Justice and the FTC insist the restructuring plan still has a chance. And veteran entertainment lobbyists don't think the plan is dead, either, only awaiting the appropriate prostrating before Hollings and any other relevant solons.
