Cable Acquisitions by Charter Communications Face Rising Opposition

As Charter Communications seeks approval for its $67.1 billion takeover of Time Warner Cable and Bright House Networks, critics point to the same potential for harm as the Comcast-TWC merger that failed in 2015.

If approved, the proposed merger would create a powerful new force in the country’s broadband market. The combined company would rank as the country’s second-largest broadband provider behind Comcast with about 19.4 million subscribers, and the country’s No. 3 video provider with 17.3 million customers, across about 40 states. That increased heft is coming under close scrutiny as federal regulators continue their review of the Charter deals. If approved, the merger would most likely include strong conditions meant to prevent Charter from leveraging its market power to hurt rival streaming services, regulatory experts said. With increased clout, for instance, the company could restrict television networks from selling their content through stand-alone streaming services.

Another prominent issue is the role and influence of John Malone, the media mogul whose company Liberty Broadband would hold a 20 percent stake in a reconstituted Charter. Some groups have called for regulators to place restrictions on the involvement of Malone, saying that his interests in entertainment companies — including Discovery Communications and Starz — could represent untenable conflicts. Whit Clay, a spokesman for the Liberty businesses, declined to comment.