IP: Secret FTC-DOJ Deal on Telecom/Media Threatens Consumers

[David Farber <dave () farber net>]

> > Date: Thu, 17 Jan 2002 10:41:40 -0500
> > To: jeff () democraticmedia org
> > From: Jeff Chester <jchester () starpower net>
> > Subject:  Secret FTC-DOJ Deal on Telecom/Media Threatens Consumers
> >
> > The Chairman of the Federal Trade Commission, Tim Muris has been secretly 
> > meeting with Ass't Attorney-General Charles James to restructure 
> > anti-trust review.  The goal is to supposedly speed up the process for 
> > review.  In the deal which will be announced today at a 1 p.m. press 
> > conference, they will reveal that the FTC has given up review of all 
> > media, communications, publishing and entertainment industry 
> > mergers.   This will include forgoing FTC involvement in the upcoming 
> > merger review of AT&T and Comcast, despite its striking similarities to 
> > last year's review of AOLTime Warner.
> >
> > Several Commissioners of the FTC were only notified of the agreement late 
> > Tuesday.  They were allegedly told by Chairman Muris that he didn't 
> > believe he had to inform them of the process, nor did Muris believe that 
> > such a radical change in the FTC operations had to be brought to a 
> > vote.  We believe that key Congressional leaders, including Sen. 
> > Hollings, is yet uninformed.  With this jurisdictional change, he and his 
> > Committee will lose vital oversight control.
> >
> > This development threatens consumer and citizen interests.  The FTC's 
> > bi-partisan and more independent approach has made it a more effective 
> > mechanism to review mergers in the media industries.  It provided an 
> > opportunity for all perspectives to be discussed.  The FTC is especially 
> > expert in media mergers involving new digital networks, as it 
> > demonstrated in the AOL TW review.  Now authority for media mergers will 
> > be in the hands of a politically appointed official who has shown, in the 
> > Microsoft case, that DOJ is unwilling to develop serious policy 
> > approaches to ensure open and competitive digital markets.
> >
> > Communications and media are the lifeblood of a democracy, and the 
> > removal of the FTC harms consumer welfare.  The process used by Muris and 
> > James also smacks of government operated as a "Star Chamber," where the 
> > public--and their representatives--are deliberately kept uninformed.
> >
> > Consumer groups will protest this announcement, as will likely key officials.
> > For additional information, I can be reached today at 202-494-7100, or at 
> > 202-232-2234.
> >
> > Jeff Chester
> > Executive Director
> > Center for Digital Democracy
> > www.democraticmedia.org

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