Court gives Comcast win in overturning cable subscriber limits

August 28, 2009

The U.S. Court of Appeals for the District of Columbia Circuit has ruled in favor of cable and internet provider Comcast in its lawsuit seeking to overturn federal limitations on the share of cable subscribers a single provider can have.

In ruling in favor of Comcast, the court vacated the 30 percent subscriber cap established by the Federal Communications Commission, which it said was "arbitrary and capricious because the [FCC] failed adequately to take account of the substantial competition cable operators face from non-cable video programming distributors."

The ruling means Comcast and other cable providers will be able to expand their market share beyond 30 percent by acquiring other cable operators.

"We are pleased the D.C. Circuit has vindicated our position," a Comcast spokeswoman said, according to Dow Jones. "This important decision affirms that rules must reflect the changing realities of the dynamic video marketplace where today consumers have more choice in video providers and channels than ever before."

FCC Commissioner Robert M. McDowell said the 30 percent national cap on cable system ownership relied on "aging data and questionable assumptions," which do not reflect the current state of competition in the multichannel video marketplace.

Cable companies face increasing competition from online video services, which have become possible through the development of faster broadband internet.

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