IP Democracy: Congress Talks Tough About AT&T-BellSouth Merger

The National Journal’s Drew Clark has this item about congressional reaction to the AT&T-BellSouth merger. Even as antitrust experts reach a consensus that there’s not much of a scholarly or legal basis for challenging the merger, congressional leaders are nonetheless vowing to take a serious look at the deal’s potential for harming competition.

Hearings are being planned on both the House and Senate sides, with Senate Commerce Committee Co-Chairman Dan Inouye (D-HI) talking the toughest. Inouye said

Coming only 125 days after the FCC’s approval of the SBC-AT&T merger, AT&T’s proposal to purchase BellSouth would remove yet another potential competitor from the communications marketplace and calls into question whether the future of communications policy will be marked by strategies to promote vigorous competition or by further efforts to facilitate new mergers.

While these hearings will probably not result in any difficulties for the merger, they could delay the ultimate passage of any Telecom Act rewrite legislation. And, as Drew points out, the merger gives some new life to the idea of including network neutrality provisions in telecom reform legsilation.

Posted by Cynthia Brumfield on March 6, 2006 10:42 PM to IP Democracy