U.S Justice Department sues to block AT&T-Time Warner deal


The U.S Justice Department has filed a lawsuit to block AT&T’s takeover of Time Warner. In a statement, the entity said that the combination of these companies would harm consumers and competition.

“AT&T/DirecTV’s combination with Time Warner is unlawful, and absent an adequate remedy that would fully prevent the harms this merger would cause, the only appropriate action for the Department of Justice is to seek an injunction from a federal judge blocking the entire transaction,” said Makan Delrahim, assistant attorney general for the DOJ’s antitrust division.

Delrahim said that “this merger would greatly harm American consumers” and “it would mean higher monthly television bills and fewer of the new, emerging innovative options that consumers are beginning to enjoy.”

In turn, AT&T general counsel David McAtee said the lawsuit was 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.”