The U.S. justice Department filed a lawsuit to prevent the merger of AT&T and Time Warner

© Flickr / cliff1066™the U.S. Department of justice. Archival photoThe U.S. justice Department filed a lawsuit to prevent the merger of AT&T and Time Warner© Flickr / cliff1066™

The U.S. Department of justice filed a civil lawsuit intending to block the proposed acquisition of the conglomerate Time Warner Inc. AT&T, according to a press release of the Ministry.

The Ministry of justice believe that such a transaction will substantially reduce competition, and this, in turn, will lead to higher prices and reduced innovation. The merger of two companies can become one of the largest mergers in American history.

According to the lawsuit, filed in the court of the district of Columbia, United conglomerate can use its control over popular networks with Time Warner to force competitors to pay hundreds of millions of dollars more for the right to broadcast. Also in the Ministry of justice feared that the Union would slow down the industry to transition to the new platforms of video distribution that would provide greater choice and opportunity to save.

«This merger will bring great harm to the American consumers. This is higher bills for TV and fewer new options. The only appropriate action for the Ministry of justice is the search of an injunction from a Federal judge to block the whole deal,» said assistant attorney General makan Delrahim.

Last fall, AT&T announced the agreement on the purchase of media conglomerate Time Warner, which owns, in particular, the CNN, more than $ 100 billion. This amount includes of 85.4 billion for the acquisition of Time Warner, as well as the company’s debts, which had planned to take on AT&T. the Deal has been approved by the European Commission (EC), the governments of Mexico and Chile.

Source

Be the first to comment on "The U.S. justice Department filed a lawsuit to prevent the merger of AT&T and Time Warner"

Leave a comment

Your email address will not be published.


*