On May 16, Charter Communications announced plans to acquire rival cable provider Cox Communications, a deal valued at $34.5 billion that would create the largest cable and broadband provider in the United States. In a new insight, Director of Competition Policy Fred Ashton and Director of Technology and Innovation Policy Jeffrey Westling explain why the administration should consider the pro-competitive benefits of the proposed merger.

They conclude:

While the Trump Administration has expressed concerns about market concentration, the Charter/Cox deal highlights why narrow views of competition and markets could actually harm the administration’s goals. Even if the Trump Administration wants less concentration in broadband markets, this deal between two firms that do not directly compete would inject more competition into a variety of markets and lower costs for consumers. That said, the deal will likely not be approved without capitulation from Charter on a variety of unrelated businesses practices.

Read the analysis.