US moves to block AT&T's takeover of Time Warner

By Elliot Bullman

The US Department of Justice has filed a lawsuit to block telecoms giant AT&T's acquisition of Time Warner, the owner of CNN and HBO.

The department said the merger would reduce competition and lead to higher consumer prices. AT&T vows to fight the move, calling it a radical departure from US competition practice.

AT&T chief executive Randall Stephenson said he thought the acquisition had been on a good path "until recently".

Assistant attorney general Makan Delrahim of the Department of Justice's antitrust division, said It would mean higher monthly television bills and fewer of the new, emerging innovative options that consumers are beginning to enjoy.

He also asserts that the combination would hurt the emergence of new online television options and give AT&T the power to force rival pay TV companies to pay "hundreds of millions of dollars more" for Time Warner content.

During his presidential campaign last October, Mr Trump said that the deal would not be approved "in my administration because it's too much concentration of power in the hands of too few".

AT&T called Monday's lawsuit "a radical and inexplicable departure from decades of antitrust precedent".

3.png

The company's general counsel, David McAtee, said: "Vertical mergers like this one are routinely approved because they benefit consumers without removing any competitor from the market. We see no legitimate reason for our merger to be treated differently."

RELATED NEWS

  • MORGAN STANLEY: Here are the 6 internet stocks to bet on in 2018MORGAN STANLEY: Here are the 6 internet stocks to bet on in 2018
  • Ford announces $11B investment, 40 electrified vehicles by 2022 at Detroit Motor ShowFord announces $11B investment, 40 electrified vehicles by 2022 at Detroit Motor Show
  • Automobile Revenues will fall 40% due to Electric and Autonomous VehiclesAutomobile Revenues will fall 40% due to Electric and Autonomous Vehicles
  • Mexico debuts its best startups for 2018 at CESMexico debuts its best startups for 2018 at CES
  • Inside the Secret Society Running the World of CryptocurrencyInside the Secret Society Running the World of Cryptocurrency
  • Opinion: Who Will Profit Off the Next Crash?Opinion: Who Will Profit Off the Next Crash?
  • This is how Jeff Bezos will support the This is how Jeff Bezos will support the 'dreamers'
  • Oil Reaches $70 a Barrel for First Time in Three YearsOil Reaches $70 a Barrel for First Time in Three Years
  • Peso predicted to make comeback in 2018: BloombergPeso predicted to make comeback in 2018: Bloomberg
  • Chihuahua´s governor denounces Government reprisals for PRI corruption investigationChihuahua´s governor denounces Government reprisals for PRI corruption investigation
  • US Weather Disasters Cost Record $306 Bn. Dollars in 2017US Weather Disasters Cost Record $306 Bn. Dollars in 2017
  • CES 2018: "E-Sports will be the most watched and played sport in the next decade"CES 2018: "E-Sports will be the most watched and played sport in the next decade"
WATCH LIVE TV



Most Read Articles
Most Watched Videos
  • Generations Riviera Maya
  • Mayair

Language

Mexico News Network
All rights Reserved 2018