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AT&T/Time Warner Merger Blocked

Last night, in Washington DC, the U.S. Department of Justice filed a lawsuit to block AT&T’s proposed $85-billion purchase of Time Warner. The deal was announced back in October 2016, and would be one of the largest media mergers in American history.

If AT&T were to grow anymore powerful, they would suppress competition. There would be fewer companies who could offer the same services because of AT&T’s size, wealth and visibility. This would cause an increase in monthly payments for TV and Internet. AT&T insists the merger will not affect the consumer's monthly payments.

Critics of the lawsuit believe President Trump is using this case as payback towards CNN, which Time Warner owns. Critics point out that Trump often criticizes CNN via Twitter, which can be used as evidence in court. This case is likely to drag on for months until a verdict is made.


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