However, both agencies expressed conditions that the telcos must abide by for the deal to go through. The remaining full FCC must now vote on the proposed deal.
As Ars reported earlier, Charter is now set to become the nation's second largest Internet service provider after Comcast, with the two companies controlling the majority of high-speed Internet subscriptions. Comcast struck a deal to buy Time Warner Cable in February 2014, but it failed to convince the FCC and DOJ to approve that merger. Among other things, the agencies were concerned that a bigger Comcast would try to harm online video providers that need access to Comcast's broadband network.
Seemingly to alleviate that concern, on Monday, the DOJ filed a lawsuit and a proposed settlement, which would halt Charter’s ability to strike deals that make it more difficult for "online video distributors" (like Hulu or Netflix) to obtain more content.
"Online video distributors offer consumers greater choices for video services," Renata B. Hesse, head of the DOJ’s Antitrust Division, said in a statement. "This merger would have threatened competition by increasing the merged company’s leverage to demand that programmers limit their licensing to these online providers. Together with our counterparts at the FCC, we have secured comprehensive relief and we will work together to closely monitor compliance to ensure that New Charter will not have the power to choke off this important source of disruptive competition and deny consumers the benefits of innovation and new services."
FCC Chairman Tom Wheeler said in a statement: "New Charter will not be permitted to charge usage-based prices or impose data caps. Second, New Charter will be prohibited from charging interconnection fees, including to online video providers, which deliver large volumes of Internet traffic to broadband customers."
Charter did not immediately respond to Ars’ query as to whether it would affirmatively accept the proposed DOJ settlement, but seemingly indicated that it would. In a statement, the company said it was "pleased" by the proposed conditions by both government agencies."The conditions that will be imposed ensure Charter’s current consumer-friendly and pro-broadband businesses practices will be maintained by New Charter," Charter wrote. "We are confident New Charter will be a leading competitor in the broadband and video markets and are optimistic that we will soon receive final approval from federal regulators as well as the California [Public Utilities Commission]."
Immediately after the DOJ and the FCC threw their support behind the deal, Free Press, an advocacy group that has previously denounced the plan, proclaimed its disappointment.
"There’s nothing about this massive merger that serves the public interest," Free Press CEO Craig Aaron said in a statement. "There’s nothing about it that helps make the market for cable-TV and Internet services more affordable and competitive for Americans.
"Thanks to this merger both Charter and Comcast now have unprecedented control over our cable and Internet connections," he added. "Their crushing monopoly power will mean fewer choices, higher prices, no accountability and no competition. Conditions won’t lower the monthly bills for those who’ll be hit hardest by these rate hikes: low-income households and communities of color."
Disclosure: Bright House is owned by the Advance/Newhouse Partnership, which is part of Advance Publications. Advance Publications owns Condé Nast, which owns Ars Technica. Advance/Newhouse would own 13 percent of Charter after the proposed transactions.
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