On May 16, Charter Communications announced its intention to acquire Cox Communications in a deal valued at $34.5 billion. This merger would create the largest cable and broadband provider in the United States.
Fred Ashton, Director of Competition Policy, and Jeffrey Westling, Director of Technology and Innovation Policy, have shared insights on the potential benefits of this merger. They suggest that the administration should consider the pro-competitive aspects of the proposed deal.
“While the Trump Administration has expressed concerns about market concentration, the Charter/Cox deal highlights why narrow views of competition and markets could actually harm the administration’s goals,” they noted. They argue that even if there is a desire for less concentration in broadband markets, this merger between two non-direct competitors could enhance competition across various markets and reduce consumer costs.
However, it is anticipated that approval will require Charter to make concessions regarding certain business practices unrelated to this deal.
