The Federal Communications Commission has paused its review of a proposed merger between Comcast and Time Warner, suggesting that the process could take longer than expected.
The FCC has also paused its review of AT&T's proposed purchase of DirecTV, suspending its deadlines for comments, saying that there have been arguments by programmers over the disclosure of their contracts with the cable and TV companies.
While the proposed Comcast merger with Time Warner has received a lot of backlash, the AT&T acquisition of DirecTV has received much more favorable opinions.
"Unlike other mergers during the past few years, the proposed combination of these unique complementary assets speaks to the enhancements of our nation's broadband infrastructure in the 21st century," said Marc Andreessen in a statement. "...The merger will result in a much broader, rural wireless footprint utilizing a new fixed wireless technology, as well as deeper fiber penetration, which will produce more broadband infrastructure capable of supporting the 1 GB networks of tomorrow."
Comcast proposed a buyout of Time Warner for $45.2 billion in February. AT&T proposed its buyout of DirecTV for $48.5 billion in May.
Most critics have suggested that the merger between Comcast and Time Warner could cause Comcast to be able to use its power unfairly against rivals. Despite this, Comcast and Time Warner both say that a deal between them will not change competition for consumers because the companies are not rivals for subscribers.
According to reports, Dish Network has told the FCC that the disputes over programming contracts have affected its ability to participate in the review of the mergers. The FCC has said that it agrees with these statements. Dish Network has been a public critic of the proposed merger since it was first announced.
"It is routine for the FCC to pause the review of significant transactions as it works to create a full record," said Sena Fitzmaurice, a spokesperson for Comcast. "The commission is working to hear the concerns of various parties."
Both Comcast and AT&T have suggested that the pause in the FCC's 180-day review clock is simply routine and that it should not affect the outcome of the case.
"The FCC's decision to stop the clock has nothing to do with the merits of our deal," said Michael Balmoris, a spokesperson for AT&T. "The FCC stopping the clock on merger reviews is fairly common and today's decision does not change our expectation to close our deal in the first half of 2015."
In 2011, the FCC stopped the clock twice while considering a purchase by Comcast of NBC Universal. The deal was ultimately approved by the agency after 234 days.
