Comcast/NBCU deal to be judged on evidence: DOJ

WASHINGTON | Wed Jun 9, 2010 6:14pm EDT

WASHINGTON (Reuters) - U.S. regulators will either challenge or allow Comcast's proposed takeover of NBC Universal on the evidence, U.S. Justice Department antitrust chief Christine Varney said on Wednesday.

Asked about the deal by Senator Al Franken, who expressed concern about loss of independent programing and higher cable bills because of consolidation in the sector, Varney said that it would be looked at thoroughly and a court would make any remedies binding.

"Let me assure you senator, we don't rely on promises," said Varney, the assistant attorney general for antitrust.

Comcast Corp (CMCSA.O), the top U.S. cable provider, is seeking a controlling stake in General Electric Co's (GE.N) NBC Universal in a $30 billion joint venture being reviewed by the Justice Department and the Federal Communications Commission.

The proposed transaction has caused an uproar with consumer and public interest groups who have warned that the deal is likely to result in higher prices for consumers.

Senator Herb Kohl, who chaired the hearing of the antitrust, competition policy and consumer rights subcommittee, has pressed for the deal to approved only if Comcast's competitors are assured access to NBC Universal's content and if there is support for independent programing.

Kohl also wants Comcast to be required to divest the 32 percent stake in online video site Hulu.com if it wins approval.

Hulu is considered the digital jewel of the transaction. Having a stake in Hulu would help Comcast sidestep a big concern for cable companies, namely that users could start cutting subscriptions if they could see their favorite shows free online.

(Reporting by Diane Bartz; Editing by Tim Dobbyn)

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