Netflix Inc. told regulators it would object to AT&T Inc.'s
proposed $49 billion acquisition of DirecTV unless conditions were
imposed to protect competitors that distribute video over the
Internet.
In a meeting with staff at the Federal Communications
Commission, Netflix said the merger would leave AT&T as a big
broadband provider with a giant stake in traditional pay
television, giving it "incentive and ability to harm online video
distributors."
"Netflix urges the Commission to reject the merger as currently
proposed, " the company said in a filing.
A Netflix spokeswoman said the company has been active in
regulators' review of the deal and pushing for "appropriate
remedies," but doesn't oppose the deal outright.
An AT&T spokesman declined to comment. Netflix has
previously filed concerns about the deal, along with others,
including Internet wholesaler Cogent Communications Holdings
Inc.
Comcast Corp.'s $45 billion deal for Time Warner Cable fell
apart amid regulators' concerns about the risks to emerging online
video platforms. AT&T's deal has been getting an easier ride,
however. The FCC sees it as helping competition and aiding the
spread of broadband into rural areas that lack service, people
familiar with the matter have said.
Write to Thomas Gryta at thomas.gryta@wsj.com
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