Fighting to defend its $81 billion takeover of Time Warner from a government challenge, AT&T is arguing that the US Justice Department (DOJ) has failed to show that the merger will raise prices for pay-TV programming and for the consumers who watch it.
In a filing Thursday, AT&T asserted the merger will save it money on content from Time Warner’s Turner Broadcasting, enabling it to cut charges to its DirecTV customers by at least $78 million a year.
US District Judge Richard Leon was correct to dismiss the government’s argument that the merger would hurt competition, limit choices and jack up prices for consumers to stream TV and movies, AT&T said in its filing. The government “failed for multiple reasons to (show) that net retail prices will likely be higher than otherwise,” the company said.
The DOJ, however, has maintained that Judge Leon was wrong in concluding the merger won’t harm consumers and that he misunderstood the complexities of the booming pay-TV market and the nature of AT&T’s competitors.
The DOJ contends that this deal is different. By combining the programming content of Time Warner’s Turner Broadcasting with AT&T’s vast distribution network for its DirecTV, the combination will hurt competition and violate federal law, it says.
Featured News
Judge Mehta Questions Both Sides in Landmark Google Antitrust Case
May 2, 2024 by
CPI
FCC Urges Urgent Funding for Removal of Chinese Telecom Equipment from U.S. Networks
May 2, 2024 by
CPI
Former Pioneer CEO Facing Potential Criminal Charges For Colluding With OPEC
May 2, 2024 by
CPI
South Korea’s Antitrust Regulator Greenlights K-Pop Powerhouse Deal
May 2, 2024 by
CPI
Exxon’s Pioneer Purchase Approved, Former CEO Barred from Board
May 2, 2024 by
CPI
Antitrust Mix by CPI
Antitrust Chronicle® – Economics of Criminal Antitrust
Apr 19, 2024 by
CPI
Navigating Economic Expert Work in Criminal Antitrust Litigation
Apr 19, 2024 by
CPI
The Increased Importance of Economics in Cartel Cases
Apr 19, 2024 by
CPI
A Law and Economics Analysis of the Antitrust Treatment of Physician Collective Price Agreements
Apr 19, 2024 by
CPI
Information Exchange In Criminal Antitrust Cases: How Economic Testimony Can Tip The Scales
Apr 19, 2024 by
CPI