Department of Justice wants to block AT&T-Time Warner merger (CNET News)
Department of Justice wants to block AT&T-Time Warner merger (CNET News)
2018-03-21
the DOJ is suing AT&T to stop its merger
with Time Warner AT&T is one of the
largest wireless and broadband companies
in the country and it already controls
Internet access for millions of
consumers meanwhile Time Warner is one
of the major media brands in the u.s. it
owns popular content like HBO's Game of
Thrones and so the fear here from the
Justice Department is that this combined
company will use its market power to
unfairly jack up prices for competitors
and this will ultimately lead to higher
prices for consumers ATT and Time Warner
say this has nothing to do with trying
to run their competitors out of business
this is about survival they see
companies like Amazon and Netflix as
their competitors of the future so in
order for them to be able to compete in
this new media landscape they really
need to combine efforts it's no secret
that President Trump is no fan of CNN
which is owned by Time Warner and when
this deal was first announced Trump said
from the campaign trail that he would
block it he said that it would put too
much control in the hands of one company
but a lot of people are wondering if
Trump who is usually very pro-business
is really just getting the DOJ to block
this deal to punish CNN that's a really
great question and it's one that AT&T
and Time Warner's lawyers have been
asking
they say that Comcast is also a very
large broadband company NBC Universal
was also a really big media brand and
the government seemed to be fine
allowing those two companies to combine
and so they say that it looks like the
data DOJ is selectively deciding when to
enforce its antitrust laws
however this case shakes out it's a big
deal for consumers the media landscape
is changing so drastically and so
dramatically people are no longer
subscribing to paid TV services instead
you've got a lot of cord cutting and
people streaming content from places
like Netflix and Amazon so it's
completely changed things and meanwhile
the wireless industry is in an all-out
price war which has been driving down
prices and forcing companies like AT&T
to look for revenue and other places and
all of this has been really great for
consumers but where do things go from
here who's going to be the company that
that offers the shows that you want to
watch and that is in part I think going
to be answered by the outcome of this
case so stay tuned
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