The Federal Communications Commission and Lessons of Recent Mergers and Acquisitions Reviews

At the Telecommunications Policy Research Conference (TPRC), Federal Communications Commission General Counsel Jon Sallet spoke about the FCC’s merger review process:

Our actions on big mergers and acquisitions have attracted a lot of comment and I’m proud of what we’ve achieved. But why did we come to the views that we’ve held? What were our theories and our core concerns? What forms of analysis did we employ? Some of that is in the public record, some is not. Let me take a few minutes to help you look within the mind of the FCC staff. The work of the FCC in connection with three recent transactions has demonstrated five important principles:

1. Facts and the core methodologies of antitrust are the starting place of the Commission’s analysis.
2. The broader legal standard entrusted to the Commission – namely the requirement that applicants demonstrate that their proposed transactions will further the public interest – is an appropriate means to look beyond the traditional strictures of the antitrust laws (most notably the Clayton Act).
3. The Commission closely examines public-interest commitments that applicants offer.
4. The Commission is putting in place strong mechanisms to ensure compliance with conditions.
5. The Commission brings particular expertise, especially in the economics and engineering of networks, that complements the expertise of antitrust agencies.