Justice Department kicks off Comcast probe


Details

Michelle Clancy

| 26 November 2015




The US Justice Department is reportedly looking into whether Comcast has too much sway over the local cable advertising market.



Bloomberg is reporting that the probe is looking at Comcast's influence in interconnects, which is when one pay-TV provider sells cable advertising to local businesses on behalf of other pay-TV operators in the market.

"These interconnects increase efficiency and help keep costs down for advertisers and are responsive to the needs of major local advertisers," Comcast said in a statement to Bloomberg. "These long-standing industry practices are good for advertisers and consumers." Comcast and other cable providers "are continuing to provide these important services to our clients".

About two minutes of commercial time each hour is typically set aside for local ad buyers such as car dealers. Comcast sells ads to local businesses through a division called Comcast Spotlight. "We plan to cooperate fully with the Department of Justice's inquiry," Comcast said in an emailed statement.