Scrutiny Sought for Comcast-Netflix Deal

Consumers Union asks if it violates terms of Comcast merger with NBC.

The Los Angeles Times reports that the Consumers Union is asking for government scrutiny of the Comcast-Netflix deal that will allow the video streaming service to stream uninterrupted to the cable giant’s Internet customers.

Consumers Union, which publishes Consumer Reports magazine, called on Federal Communications Commission Chairman Tom Wheeler and U.S. Atty. Gen. Eric Holder to investigate whether Comcast is abiding by its agreement to treat all Internet traffic equally. Comcast made the promise to win federal government approval of its 2011 purchase of a controlling interest of media conglomerate NBCUniversal.

“We are concerned that many Comcast customers who experienced problems with Netflix sought faster and more expensive services from Comcast to alleviate the problems,” wrote Consumers Union attorney Delara Derakhshani. “Comcast failed to disclose what was transpiring.”

Comcast is already under scrutiny, of course, thanks to its proposed merger with Time Warner cable.

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