Comcast abandoned its bid for Time Warner Cable and proved that smart government regulation is good for both freedom and free markets.
Comcast announced on Friday that it was giving up its $45 billion bid for Time Warner Cable, a deal that would have brought the two largest cable and broadband providers in the country together under one gloriously monopolistic roof.
The deal was never about TV, it was about controlling 57 percent of the nations broadband internet access. Comcast knows that media consumption is moving online, regardless of if you watch on your TV, computer, tablet or phone.
The deal fell through because of recent regulatory scrutiny, but it was dead the moment legislation started moving in favor of net neutrality. Net neutrality, the principle that governments and internet service providers should treat all data on the internet equally, is the single most important piece of information centric legislation. It makes it so companies can’t charge based on content or creators, meaning that this blog has just a much a right to your ISP pipes that Netflix has.
The abandonment of the merger is proof that government regulation can protect and empower free market capitalism and democratic political movements. Who knows what would have happened if net neutrality advocates never fought for protective regulation, but using even our most limited imagination we can guess.
What if Facebook, which had yet to raise substantial capital money during its explosion across college campuses, had limited growth out because they couldn’t pay for space in Comcast’s pipes?
If Twitter had to pay for each individual tweet after Mohamed Bouazizi lit himself in protest, what would have happened to the Arab Spring?
Who knows, but it is probably a good thing that the two worst ranking customer customer service giants didn’t become one titan.
More competition, more opportunity and more access to information for all
Choke on that disillusioned, freedom hating trickle down psychopaths.