AT&T Tells Court its Mega Merger is "Pro-Consumer" AT&T has extended its predicted date for approval of its $86 billion merger with Time Warner to April, 2018. The DOJ last week announced that it would be suing to stop the merger, after reports indicated AT&T rejected DOJ demands to sell either Turning Broadcasting (owner of CNN) or DirecTV. Reports indicate that AT&T lawyers are investigating if Trump's disdain for CNN -- or Rupert Murdoch's desire the deal be quashed -- played a role in pressuring the DOJ. AT&T apparently hopes that this extension will give it enough time to successfully navigate the DOJ's challenge.

And while AT&T investigators are trying to dig up proof that Trump unduly influenced the DOJ investigation, its lawyers are busy arguing in court that the DOJ is engaged in "improper selective enforcement of the antitrust laws." AT&T's official response to the DOJ's lawsuit consistently tries to argue that the merger "a pro-competitive, pro-consumer response to an intensely competitive and rapidly changing video marketplace." Folks that actually represent consumers disagree. They argue that AT&T already has a long, documented record of anti-competitive behavior, and the greater size and leverage provided by the deal will only make AT&T's behavior worse. They argue AT&T will only make it harder than ever for smaller streaming operations to secure the licenses they need (especially HBO) to compete with AT&T's own services. AT&T lawyers, however, remain confident that the DOJ will lose in court anyway. "To challenge a vertical merger, the Government must prove that the merging parties enjoy sufficient market power in their respective markets to cause antitrust concern," AT&T's lawyers argued this week. "Otherwise, the vertical combination of two companies occupying different levels of the supply chain cannot substantially lessen competition in violation of Section 7 of the Clayton Act. On this threshold issue, the Government cannot meet its burden of proof. This is not a vertical combination of two firms with an imposing market share or anything near it."







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Most recommended from 12 comments

rradina

join:2000-08-08

Chesterfield, MO 920.3 39.3

·Charter

5 recommendations rradina Member Is Horizontal Integration Required to Harm Consumers? Standard Oil secretly negotiated with railroads for drawbacks. Microsoft did not have a monopoly in browsers but used its majority desktop position to create one.



ATT's merger is like Standard Oil buying the railroads (except in reverse -- ATT is buying what it transports). Although Rockefeller did not buy the railroads, he arguably had an even better position. He controlled the cost of shipping oil and engineered a deal where the railroads paid him for every barrel of oil shipped -- whether from Standard or its competitors. Kearnstd

Space Elf

Premium Member

join:2002-01-22

Mullica Hill, NJ 2 recommendations Kearnstd Premium Member Now we know the merger is bad The moment they have to claim something they are doing is "Pro Consumer" we know its a bad idea, Its like when these companies add a new fee and claim it "Improves the customer experience" you know its bull.



Hell I bet this merger will generate a new fee for AT&T customers. BravoGolf

join:2006-12-30

Gary, IN 2 recommendations BravoGolf Member Fools? Fool us once, shame on you.



Fool us twice, shame on us.