Comcast/Fox Could Carry Less Antitrust Baggage Than Disney, ICLE Says
A Comcast play for Fox nonbroadcast assets might carry less antitrust risk than Disney's bid for Fox assets, wrote International Center for Law and Economics Executive Director Geoffrey Manne in an issue brief Wednesday. Comcast said Wednesday it was preparing…
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a bid for the Fox assets (see 1805230019). Comcast/Fox would be largely vertical, while Disney/Fox would be predominantly horizontal, and it's generally easier to get antirust approval for vertical deals, he said. That DOJ is challenging AT&T/Time Warner doesn't mean the agency has become more hostile to vertical deals overall, he said, saying the foreclosure effects that were a big part of DOJ's harm theory in AT&T/TW would be smaller or non-existent in Comcast/Fox. He said the theatrical film market is "undeniably competitive," with Disney as the largest major studio having 22 percent of the market last year. He said Comcast being an ISP as well as cable service cuts anticompetitive risks because New Comcast would have a bigger incentive to license content to even rival online video providers and drive broadband service. Meanwhile, Disney/Fox would give Disney a considerably large share of box office proceeds and link Fox's regional sports networks with Disney's ESPN, raising the risk New Disney would act anticompetitively on sports programming.