The Justice Department has opened an inquiry into whether Comcast Corp., the largest U.S. cable provider, holds too much sway over the local cable advertising market, according to a person with knowledge of the matter.
The probe is looking at Comcast’s influence in what are called “interconnects,” when one pay-TV provider sells cable advertising to local businesses on behalf of other pay-TV operators in the market, according to the person, who requested anonymity because the inquiry hasn’t been made public.
About two minutes of commercial time each hour is typically set aside for local ad buyers such as car dealers. Comcast sells ads to local businesses through a division called Comcast Spotlight.
“We plan to cooperate fully with the Department of Justice’s inquiry,” said Philadelphia-based Comcast by email.