US moves to block AT&T’s $85.4bn takeover of Time Warner

Latest news

    AT&TImage copyright Getty Images

    The US Department of Justice has filed a lawsuit to block telecoms giant AT&T’s $85.4bn acquisition of Time Warner, the owner of CNN and HBO.

    The decision is a surprise since US anti-trust authorities rarely object to deals involving companies that do not directly compete.

    AT&T has said it will fight the decision.

    US President Donald Trump objected to the deal during his campaign last year.

    AT&T’s general counsel David McAfee said: “Today’s DOJ lawsuit is a radical and inexplicable departure from decades of antitrust precedent.

    “Vertical mergers like this one are routinely approved because they benefit consumers without removing any competitor from the market. We see no legitimate reason for our merger to be treated differently.”

    Mr McAfee added: “We are confident that the court will reject the government’s claims and permit this merger under longstanding legal precedent.”

    US officials gave a hint of their intentions last week.

    In a speech, Makan Delrahim, assistant attorney general of the DoJ’s anti-trust division, said he did not favour the remedies the department has used in the past to curb anti-competitive behaviour.

    He said agreements that allow deals to go ahead, but require ongoing monitoring by the Department of Justice are overly intrusive and hard to enforce.

    Mr Delrahim was appointed by President Donald Trump and sworn into office last month.

    Previously, US media reported that the Department of Justice was pushing AT&T to sell some of its assets as a condition for approval. The options included CNN or its satellite dish network.

    View the original article: http://www.bbc.co.uk/news/business-42058846

    AT&T chief executive Randall Stephenson said last week he would not sell CNN.

    In the same category are

    Blind British man climbs Europe’s highest mountain Media playback is unsupported on your device Media captionWatch Jack reach the summit of Mount ElbrusA 23-year-old is thought to have become the fir...
    Canada becomes second country to legalise recreational marijuana Image copyright Getty Images Canada has become the second country after Uruguay to legalise possession and use of recreational cannabis.The nationwi...
    Brexit: ‘Expectations low’ as PM heads to Brussels Media playback is unsupported on your device Media captionBBC Europe editor Katya Adler looks at how united the EU really is over BrexitTheresa May ...
    US moves to negotiate trade deals with Japan, UK, EU Image copyright Getty Images The US has said it intends to negotiate three separate trade agreements with Japan, the UK and the EU.It could take se...
    Gender Recognition Act: ‘Why we want identity rules changed’ Image copyright Rory Darling If you want to legally change your gender in the UK, first you have to be diagnosed with a mental illness.A transgender...
    Self-lubricating condom designed to reduce infections Image copyright Getty Images Scientists say they have found a way to make self-lubricating latex condoms that become slippery on contact.It is thank...

    Leave a comment

    Your email address will not be published. Required fields are marked *

    This site uses Akismet to reduce spam. Learn how your comment data is processed.