On Monday, the President of the United States, Donald Trump expressed his support via tweet for investigation against Comcast Corp alleged for anti competitive practises. The allegations were made by a cable industry group.
On Monday, the American Cable Association released a statement stating that it had requested the anti-trust division of the Justice Department of the United States to delve into the matter and conduct investigations against the business practices of Comcast.
The American Cable Association (ACA) is a representative of the hundreds of small cable as well as broadband providers which are operating in the United States.
The ACA has requested the investigating bureau to focus on the harms which stem from Comcast’s dominating communication in terms of control in some of the major markets of the country.
These markets comprise of cable systems, TV stations along with the regional network of sports.
The President apparently agrees with the call of the cable industry’s firm which the group stated that it had made on the 6th of November via a letter to the Department of Justice of the United States.
The shares of Comcast Corp witnessed a fall in the wake of the news and the tweet from the President, Trump. But the company was able to recover a major part of its losses in broadly lower market.
The shares of Comcast in late trading had a fall of 0.2 percent. This is certainly not the first support of the President on the regulatory issues which are related to the companies operating in media.
The American Cable Association stated that their concern was particularly related to the access of the members in the regional sports network.
There was no response or comment from the Comcast on the tweet of the president. But it did state in response to the letter of the ACA, that it was completely merit-less and is intended to obtain leverage in the commercial marketplace.
Source: Reuters, SgTalk
