The U.S. Department of Justice today filed an appeal with the District of Columbia Appeals Court protesting the June ruling that allowed the merger between AT&T and Time Warner to move forward, reports The Washington Post.

In the filing, the DoJ says the district court approved the merger after "erroneously ignoring fundamental principles of economics and common sense" and that it used a "deeply flawed assessment of the government's evidence" to reach its decision.

ATT new 2016 logo
According to the DoJ, AT&T's access to Time Warner's content, including the highly important Turner Broadcasting System, which includes CNN, Cartoon Network, TBS, TNT, and other networks, gives it bargaining leverage over rivals, which could drive up access fees, ultimately resulting in higher prices for consumers.

The original ruling approving the merger, says the DoJ, ignored key documents from AT&T on the competitive harm of vertical mergers, limited expert economic testimony, and refused to close the courtroom to allow for testimony related to confidential business information. Further, the DoJ insists the original ruling ignored the economics of bargaining and did not consider corporate profit maximization.

The government established a reasonable probability that the AT&T-Time Warner merger would increase Time Warner's bargaining leverage and, thus, substantially lessen competition, in violation of Section 7 of the Clayton Act.

The district court's contrary conclusion rests on two fundamental analytical errors: it discarded the economics of bargaining, and it failed to apply the foundational principle of corporate-wide profit maximization. These errors colored the court's view of the facts, leading to a decision that is clearly erroneous in light of the evidence presented at trial.

The Department of Justice is asking the appeals court to vacate the district court's ruling and remand the matter for further proceedings.

AT&T and Time Warner completed their merger in June following the judge's ruling that the merger was legal. The Justice Department said at the time that it was disappointed in the court's ruling and would consider its next steps, but allowed the merger to move forward and did not file an emergency stay.

While the merger is finished, the Department of Justice remains able to appeal the judge's ruling and first announced plans to do so back in mid-July.

Shortly after acquiring Time Warner, AT&T announced a new WatchTV service allowing AT&T wireless subscribers with new "AT&T Unlimited &More" and "AT&T Unlimited &More Premium" plans access to more than 30 live channels and 15,000 TV shows and movies on demand.

AT&T's plans are more expensive than previous unlimited wireless plans, but they include WatchTV, which AT&T charges $15 per month for on a standalone basis.

Though AT&T said that its prices would not increase following the merger, it raised prices on its DirecTV Now plans by $5. AT&T also recently raised its administrative fees for postpaid wireless subscribers to $1.99, which some analysts have speculated is to make up for the expense of the Time Warner purchase.

Note: Due to the political nature of the discussion regarding this topic, the discussion thread is located in our Politics, Religion, Social Issues forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Top Rated Comments

aka777 Avatar
82 months ago
Government protecting consumers. That’s a good one. All their unnecessary regulations causes prices on everything to be tremendously higher than they should be in the first place.
This deal would be blocked in pretty much any other developed country. It's just interesting that free market capitalist types don't seem to grasp the core fundamentals of Capitalism, which is competition. Monopolies and Super-Corporations go against the core principle of Capitalism.

Also, with the exception of America, every single developed country has government bodies looking out for their We the People. The success of this is why today, 19 of the top 20 economies on the planet are Big Gov types.

We can also break this down on a state level, as almost all of the bottom 20 states for GDP per capita, wealth per capita, home prices, incomes, quality of life, poverty, education etc are No Gov Red States. Whereas, the majority of the top 20 states for the above are Big Gov Blue States. Ironically, the biggest welfare recipient states in the Union are also No Gov Red states.
Score: 23 Votes (Like | Disagree)
ActionableMango Avatar
82 months ago
This deal would be blocked in pretty much any other developed country. It's just interesting that free market capitalist types don't seem to grasp the core fundamentals of Capitalism, which is competition. Monopolies and Super-Corporations go against the core principle of Capitalism.
There is plenty of competition to AT&T/DirectTV.

For TV there is free over-the-air antenna, all the cable companies, FIOS, DISH, Amazon, Netflix, Hulu, Sling, iTunes, FandangoNow, VUDU, Crackle, Google Play, Yahoo, Playstation, Microsoft, and even multiple disc-based services.

There is also plenty of cell phone competition. Four nationwide networks AT&T, Verizon, Sprint, and T-Mobile, plus some regional networks like US Cellular, and dozens or hundreds of MVNOs using those networks. Right here in these forums there are plenty of people switching between the carriers all the time. It takes tens of billions of dollars to build a nationwide cellular network, so how many companies do you expect to do that and be able to compete? 5? 6? 15? I'm not even sure 4 is sustainable...Sprint isn't looking too good.


Also, with the exception of America, every single developed country has government bodies looking out for their We the People.
Oh really.

* Why Canadian cell phone bills are among the most expensive on the planet ('https://nationalpost.com/news/canada/why-canadian-cell-phone-bills-are-among-the-most-expensive-on-the-planet')
* Canadians Get Some Of World’s Worst Deals On Wireless Data, Study Finds ('https://www.huffingtonpost.ca/2018/05/08/wireless-data-prices-canada_a_23429799/')
* How Did Australia End Up With Such Ridiculously Slow Internet? ('https://www.forbes.com/sites/millystilinovic/2017/02/14/how-australias-ridiculously-slow-internet-speeds-are-harming-its-residents/#2bd3851afc06')
* Australia Internet slower than Kenya ('https://www.smh.com.au/business/companies/life-in-the-slow-lane-australia-has-slower-internet-than-kenya-20171004-gytril.html')
Score: 9 Votes (Like | Disagree)
Kaibelf Avatar
82 months ago
Government protecting consumers. That’s a good one. All their unnecessary regulations causes prices on everything to be tremendously higher than they should be in the first place.
Nonsense. This is the government interfering with a vertical merger because they want to punish CNN.
Score: 8 Votes (Like | Disagree)
aka777 Avatar
82 months ago
There is plenty of competition to AT&T/DirectTV.
They're actually purchasing the content side with this deal. They're not buying TWC. That means that AT&T will be in control of the distribution, which can and will affect all of the services that you listed.

There is also plenty of cell phone competition.
Not in America, we are about to drop to 3 carriers, which hardly counts as plenty. The largest two American carriers essentially only compete superficially anyway, which is why the American wireless market is ranked as offering one of the worst value in the developed world.

Perhaps you're thinking of Europe or Asia.

Why Canadian cell phone bills are among the most expensive on the planet
They only have 3 carriers.

Canadians Get Some Of World’s Worst Deals On Wireless Data, Study Finds
We basically rank the 2nd worst. We also rank extremely poorly for wireless speeds.

How Did Australia End Up With Such Ridiculously Slow Internet? Australia Internet slower than Kenya
That's disingenuous as the Aussies are building a $50 Billion dollar nationwide wholesale broadband network that allows for any number of competitors. It's pretty much a world first.

Now compare this to the majority of America, which barely has one broadband option. In most American cities, I had a choice of either cable or DSL. I had a good 6+ ADSL 2 options to chose from in Australia + 2 cable networks. Their Mobile networks also rank highly for speed.
Score: 4 Votes (Like | Disagree)
miniyou64 Avatar
82 months ago
Government protecting consumers. That’s a good one. All their unnecessary regulations causes prices on everything to be tremendously higher than they should be in the first place.
Score: 4 Votes (Like | Disagree)
Cigsm Avatar
82 months ago
Lol that’s so cute you think businesses aren’t in business to make as much money as possible and absolutely certainly wouldn’t do everything possible to make every dollar they can.

It’s even cuter you made that comment on an article stating AT&T told the government the merger wouldn’t raise rates and then a month after it was approved they raised rates.

Government protecting consumers. That’s a good one. All their unnecessary regulations causes prices on everything to be tremendously higher than they should be in the first place.
Score: 3 Votes (Like | Disagree)

Popular Stories

iPhone SE 4 Thumb 1

iPhone SE 4 With Apple's Own 5G Modem 'Confirmed' to Launch in March

Tuesday November 19, 2024 12:12 pm PST by
Barclays analyst Tom O'Malley and his colleagues recently traveled to Asia to meet with various electronics manufacturers and suppliers. In a research note this week, outlining key takeaways from the trip, the analysts said they have "confirmed" that a fourth-generation iPhone SE with an Apple-designed 5G modem is slated to launch towards the end of the first quarter next year. In line with previo...
airtag purple

AirTag 2 Rumored to Launch Next Year With These New Features

Sunday November 17, 2024 5:18 am PST by
Apple released the AirTag in April 2021, so it is now three over and a half years old. While the AirTag has not received any hardware updates since then, a new version of the item tracking accessory is rumored to be in development. Below, we recap rumors about a second-generation AirTag. Timing Apple is aiming to release a new AirTag in mid-2025, according to Bloomberg's Mark Gurman....
Magic Mouse Next to Keyboard

No, Apple CEO Tim Cook Didn't Say He Prefers Logitech's MX Master 3 Over the Magic Mouse

Sunday November 17, 2024 3:03 pm PST by
While the Logitech MX Master 3 is a terrific mouse for the Mac, reports claiming that Apple CEO Tim Cook prefers that mouse over the Magic Mouse are false. The Wall Street Journal last month published an interview with Cook, in which he said he uses every Apple product every day. Soon after, The Verge's Wes Davis attempted to replicate using every Apple product in a single day. During that...
Generic iOS 18 Feature Real Mock

Apple Releases iOS 18.1.1 and iPadOS 18.1.1 With Security Fixes

Tuesday November 19, 2024 10:10 am PST by
Apple today released iOS 18.1.1 and iPadOS 18.1.1, minor updates to the iOS 18 and iPadOS 18 operating systems that debuted earlier in September. iOS 18.1.1 and iPadOS 18.1.1 come three weeks after the launch of iOS 18.1. The new software can be downloaded on eligible iPhones and iPads over-the-air by going to Settings > General > Software Update. Apple has also released iOS 17.7.2 for...
at t turbo indicator iphone 16 pro max v0 8hrh7w5f3w1e1

AT&T Turbo Indicator Showing Up in iPhone Status Bar for Subscribers

Wednesday November 20, 2024 3:42 am PST by
AT&T has begun displaying "Turbo" in the iPhone carrier label for customers subscribed to its premium network prioritization service, according to reports on Reddit. The new indicator seems to have started appearing after users updated to iOS 18.1.1, but that could be just coincidence. Image credit: Reddit user No_Highlight7476 The Turbo feature provides enhanced network performance through ...
iPhone 17 Slim Feature Single Camera 1 Redux

'iPhone 17 Air' Rumored to Surpass iPhone 6 as Thinnest iPhone Ever

Monday November 18, 2024 1:07 pm PST by
In a research note with Hong Kong-based investment bank Haitong today, obtained by MacRumors, Apple analyst Jeff Pu said he agrees with a recent rumor claiming that the so-called "iPhone 17 Air" will be around 6mm thick. "We agreed with the recent chatter of an 6mm thickness ultra-slim design of the iPhone 17 Slim model," he wrote. If that measurement proves to be accurate, there would be ...
bug security vulnerability issue fix larry

Make Sure to Update: iOS 18.1.1 and macOS Sequoia 15.1.1 Fix Actively Exploited Vulnerabilities

Tuesday November 19, 2024 10:52 am PST by
The iOS 18.1.1, iPadOS 18.1.1, and macOS Sequoia 15.1.1 updates that Apple released today address JavaScriptCore and WebKit vulnerabilities that Apple says have been actively exploited on some devices. With the JavaScriptCore vulnerability, processing maliciously crafted web content could lead to arbitrary code execution. The WebKit vulnerability had the same issue with maliciously crafted...