Like all mergers, the proposed $45.2 billion Comcast merger with Time Warner Cable—the largest and second largest cable providers in the nation—has its advocates and critics. There are certainly important questions about what impact the merger would have on consumers—but there are equally significant issues associated with the highly politicized approval process.
The Obama Department of Justice, led by Eric Holder, must review the merger and decide whether to approve or block it. Unfortunately, the Obama Administration and Justice Department have a long track record of pushing the rule of law aside and making decisions based on politics. Will the proposed Comcast merger with Time Warner Cable receive the scrutiny it deserves, or simply be fast-tracked for approval based on politics?
Let’s look at some history—which is detailed in a new Frontiers of Freedom report. In 2009, the Obama Administration gave Solyndra, a failing California solar panel firm, a $536 million “loan.” Shortly thereafter, Solyndra was fully bankrupt. Prior to the loan, Solyndra executives and board members gave generously to Barack Obama, including Tulsa oil billionaire and Obama bundler George Kaiser, one of Solyndra’s main investors.
United Health Group is expecting higher earnings thanks to ObamaCare. After United supported passing the plan, one of its subsidiaries, Quality Software Services, Inc. won a contract of $90 million for the rollout of Healthcare.gov. United Health’s Executive Vice President Anthony Welters and his wife are significant Obama donors and bundlers. The Administration did not perceive any conflict of interest in providing the nation’s largest health insurer with the keys to Healthcare.gov.
If money buys favors from the Obama Administration, a lack of it produces the opposite.
In 2011, AT&T announced it would seek permission from the government for a $39 billion merger with T-Mobile. Processing the application was expected to take at least twelve months. But within five months, the Department of Justice announced it had filed a lawsuit blocking the friendly merger.
Enter AT&T CEO Randall L. Stephenson, well known to be a free market Republican favoring pro-growth tax reform and opposing Obama-style redistributing income from the working class. Mr. Stephenson has a long history of Republican giving, and averaging the three election cycles between 2006–2010, AT&T employees supported Republican candidates by 60%.