The Justice Department has been considering what affect Comcast's proposed merger with Time Warner Cable would have on the Internet service market and has reportedly come up with a verdict.
Sources familiar with the situation say the DOJ's antitrust attorneys are close to a decision that would block the $45.2 billion deal aimed at creating a "nationwide cable giant," with the major concern being that "consumers would be harmed," according to Bloomberg.
The officials and lawyers handling the case for the DOJ are currently attempting to contact outside parties to help develop a case against the merger. Other sources told Bloomberg that the officials handling the case didn't show any interest in discussing or negotiating the case in a way that would possibly remove the negative effects of the merger.
The block would leave a significant effect on Comcast's profit, since it would not be able to access key assets in major cities like Los Angeles, New York and Chicago. "Expanding Comcast's broadband Internet and video footprint would help it better compete with satellite, web and telecommunications competitors who have taken hundreds of thousands of TV subscribers from the Philadelphia-based company in recent years," Bloomberg reported.
The sources added that the DOJ's attorneys could submit their review as early as next week, and that the antitrust division's senior officials will make the final decision on what to do about the deal.
