New York Flaunts Clout in Review of Comcast Deal

In a test of state clout over megamergers, New York regulators are threatening to disrupt Comcast’s acquisition of Time Warner Cable unless the companies agree to costly concessions. From Albany to Sacramento, the nation’s two biggest cable providers are trying to appease state officials reviewing the deal. While the US government is reviewing the alliance on antitrust grounds, states have authority over cable service on their soil. New York regulators have additional power due to a state law passed this year that requires cable mergers to benefit the public. If a key state such as New York rejects the acquisition, it could lead the companies to abandon the plan. The New York State Public Service Commission is scheduled to vote on Oct. 2, and its staff has recommended the acquisition be approved only if concessions are included that it says would cost Comcast $300 million. The proposals would require a post-merger Comcast to keep jobs in New York, offer faster broadband, improve customer service, expand in rural areas, and ease enrollment standards for a program that offers cheap broadband to poor families.