DOJ Sues to Stop AT&T/Time Warner

November 21st, 2017 by · Leave a Comment

It’s official, war has been declared in the world of mega mergers. The Department of Justice is planning to file a lawsuit to protect us all from AT&T’s evil ambition to own CNN.

The $85B deal had been awaiting regulatory approval for over a year until a few weeks ago, when it emerged that the DOJ had objections. Today they detailed a few of those objections in a PR about its lawsuit plans. Basically, the fear is that AT&T would be able to force cable companies to pay vast sums to have access to TW content (e.g. from HBO, CNN, TBS, and Warner Bros.), leading to higher cable bills.

It’s more than a bit puzzling politically. The pro-advocacy Obama administration let Comcast/NBC go by with a few restrictions on behavior despite being the anti-trust party, while the supposedly pro-business Trump administration is drawing a line in the sand. Even Trump’s antipathy toward CNN seemed unlikely to generate that dynamic, but something did and so here we are.

So do we go to court? Or does AT&T take its ball and go home? AT&T appears ready to fight, and no doubt their lawyers are ready to do just that. But on the other hand, they don’t have any particularly eager friends in their corner.

If you haven't already, please take our Reader Survey! Just 3 questions to help us better understand who is reading Telecom Ramblings so we can serve you better!

Categories: Government Regulations · Mergers and Acquisitions · Wireless

Discuss this Post

Leave a Comment

You may Log In to post a comment, or fill in the form to post anonymously.

  • Ramblings’ Jobs

    Post a Job - Just $99/30days
  • Event Calendar