|
|
|
Press Release Friday, May 19, 2000 |
Contact: |
Federal court of appeals decision reinforces need for
FCC
to require AT&T to shed Time Warner stake before merger with
MediaOne
WASHINGTON, D.C. -- Gene Kimmelman, co-director of Consumers
Union's Washington, DC office, made the following statement today
following the decision by the U.S. Court of Appeals for the District
of Columbia to overturn a District Court decision that the Federal
Communications Commission's limits on the ownership of cable
properties were unconstitutional:
"This is a huge victory for consumers. This ruling upholds the
right to enforce ownership limits to ensure that there is competition
in the markets for cable television, as well as broadband Internet
services.
"This is an enormously important decision, given AT&T's
pending merger with MediaOne. This ruling indicates that the
AT&T-MediaOne merger is against the law. AT&T must sell
cable systems serving more than 10 million subscribers to come into
compliance.
"Today, the clock starts ticking for AT&T and MediaOne to
start selling off properties in order to comply with the FCC's
30-percent ownership limit. The deadline should be six months from
today.
"There is no reason for the FCC to give AT&T more than six
months from today's ruling. A staff recommendation regarding the
MediaOne merger inappropriately proposes that the FCC extend the
deadline to one year in this particular case. It would be almost
perverse for the FCC to take a legal standard that was established to
protect consumers and make an exception for the benefit of these two
huge companies.
"Today's decision particularly reinforces the need for the FCC to
enforce the law by requiring AT&T to sell its stake in Time
Warner. This is essential to ensure that there is greater diversity
of ownership in cable and broadband Internet markets. We applaud the
court for its decision, and we look forward to the FCC's enforcement
of the law."
Consumers Union, publisher of Consumer Reports magazine, is an independent nonprofit testing, educational and information organization serving only the consumers. We are a comprehensive source of unbiased advice about products and services, personal finance, health, nutrition and other consumer concerns. Since 1936, our mission has been to test products, inform the public and protect consumers.
