Comcast (NASDAQ:CMCSA) is racketeering. Level 3 Communications (NASDAQ:LVLT) announced the cable goliath has demanded an additional fee to transmit online movies from companies such as Netflix (NASDAQ:NFLX).
Here are three reasons the FCC must put Comcast in its place:
- The New Fee is a Per Se Breach of Net Neutrality
Net Neutrality is the idea that all content should be treated equal by internet service providers. If Comcast can charge higher fees for movies, this clearly means movies will be more expensive to consume.
- Comcast Is Breaking Anti-Trust Laws
The idea behind anti-trust laws is to prevent monopolies from becoming fascist dictators. In this case, Comcast is both the owner of distribution (cable lines) and content. If Comcast is allowed to stiff arm Level 3, they will be using their distribution business to cripple competitors in the content arena.
- Comcast Already Sucks and Has Too Much Power
Last, but definitely not least, Comcast already sucks insofar as the quality of their service. Many people must accept this crappy service because cable operators are granted territories which preclude competition. Of course, DirecTV (NYSE:DTV) and Dish (NASDAQ:DISH) are alternatives, but if you prefer cable you generally have to live with whatever Comcast feels like giving you on any given day.
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