Darkman
06-18-03, 12:33 PM
Saw this somewhere:
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EchoStar Weighs in Against News Corp./Directv Deal
Wed June 18, 2003 04:10 AM ET
By Brooks Boliek
WASHINGTON (Hollywood Reporter) - In a role reversal, the nation's second-largest satellite TV provider is pushing the government to block News Corp.'s attempt to buy the nation's top satellite TV company.
In filings with the Federal Communications Commission, EchoStar has asked the commission to block the merger. EchoStar lost its attempt to buy DirecTV when the FCC and the U.S. Department of Justice blocked the deal. While News Corp. didn't officially attempt to stop the deal, it did openly lobby against it.
EchoStar contends that the deal will force all multichannel video providers to pay "higher programming fees for all pay TV providers, including DirecTV, cable and EchoStar. In turn, DirecTV could absorb the higher fees into News Corp., while EchoStar and cable would pay a higher fee and be forced to pass that on to consumers."
It also criticized the company for its Australian roots. It contends that it is unfair for an Australian company to own a U.S. provider when that country has trade barriers that prevent U.S. companies from competing there.
"News Corp. is a foreign-owned company," EchoStar argues. "All profits from DirecTV would go to a foreign-owned company. Also, Australia doesn't give the same opportunities for U.S. companies as FCC may give News Corp."
The company also levels charges of possible collusion and copyright infringement actions that should stand in the way of the deal.
"News Corp. was blocked in 1997 from merging with Primestar, a satellite company, for colluding with cable companies," the company wrote. "News Corp. has every opportunity to do this again."
In its filing, EchoStar contends that the FCC should abstain from ruling on the merger until after an investigation into copyright infringement is completed. According to the filing, the investigation involves a company known as NDS, in which News Corp. is a shareholder.
"We ask FCC to hold any decision until a criminal investigation is complete on NDS for copyright (hacking) violations," the company wrote. "At least one U.S. attorney general is investigating, and DirecTV, EchoStar and others are suing NDS over these issues. News Corp. owns 80% of NDS."
The company contends that a criminal or civil finding against News Corp. would be grounds for the FCC to reject the merger as it is supposed to rule on the character of the licensee.
"Even aside from the criminal investigation, a possible judicial finding that NDS has engaged in such practices would also be a highly relevant demerit under the commission's Character Policy Statement," the company wrote.
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EchoStar Weighs in Against News Corp./Directv Deal
Wed June 18, 2003 04:10 AM ET
By Brooks Boliek
WASHINGTON (Hollywood Reporter) - In a role reversal, the nation's second-largest satellite TV provider is pushing the government to block News Corp.'s attempt to buy the nation's top satellite TV company.
In filings with the Federal Communications Commission, EchoStar has asked the commission to block the merger. EchoStar lost its attempt to buy DirecTV when the FCC and the U.S. Department of Justice blocked the deal. While News Corp. didn't officially attempt to stop the deal, it did openly lobby against it.
EchoStar contends that the deal will force all multichannel video providers to pay "higher programming fees for all pay TV providers, including DirecTV, cable and EchoStar. In turn, DirecTV could absorb the higher fees into News Corp., while EchoStar and cable would pay a higher fee and be forced to pass that on to consumers."
It also criticized the company for its Australian roots. It contends that it is unfair for an Australian company to own a U.S. provider when that country has trade barriers that prevent U.S. companies from competing there.
"News Corp. is a foreign-owned company," EchoStar argues. "All profits from DirecTV would go to a foreign-owned company. Also, Australia doesn't give the same opportunities for U.S. companies as FCC may give News Corp."
The company also levels charges of possible collusion and copyright infringement actions that should stand in the way of the deal.
"News Corp. was blocked in 1997 from merging with Primestar, a satellite company, for colluding with cable companies," the company wrote. "News Corp. has every opportunity to do this again."
In its filing, EchoStar contends that the FCC should abstain from ruling on the merger until after an investigation into copyright infringement is completed. According to the filing, the investigation involves a company known as NDS, in which News Corp. is a shareholder.
"We ask FCC to hold any decision until a criminal investigation is complete on NDS for copyright (hacking) violations," the company wrote. "At least one U.S. attorney general is investigating, and DirecTV, EchoStar and others are suing NDS over these issues. News Corp. owns 80% of NDS."
The company contends that a criminal or civil finding against News Corp. would be grounds for the FCC to reject the merger as it is supposed to rule on the character of the licensee.
"Even aside from the criminal investigation, a possible judicial finding that NDS has engaged in such practices would also be a highly relevant demerit under the commission's Character Policy Statement," the company wrote.