Justice Department Goes to Court over Anti-trust Issues

The Justice Department has made it clear that it will not allow Time Warner to be bought by AT&T for $85.4 billion. As a result, the department of justice has filed a lawsuit to block the acquisition. This has proven to be among the first big acquisition to face the current administration. At the same time, this is a move that shows that the justice department is willing to cut the corporate power especially when it comes to the media industry which is fast changing. This means that the decision to oppose the acquisition is quite different compared to the path taken by the past administration. For instance, six years ago, the justice department had its say in a deal that involved NBCUniversal and Comcast. While the deal went through, it had to meet many conditions that had been imposed by the Justice Department. The department is perhaps worried by the creation of a telecommunication as well as a media giant. AT&T has managed to develop through such acquisitions. At the moment, the company provides telephone and internet services, and it’s one of the biggest companies in the US. In the past, it has acquired companies such as DirecTV in its quest for dominance. As a matter of fact, the company became a mammoth in TV distribution when the deal involving DirecTV was concluded.

The Justice Department is worried that the deal would create an unrivaled empire. This is because Time Warner already owns big businesses such as HBO. At the moment, HBO is very popular for producing Games of Thrones. Warner Bros is also a part of Time Warner. Warner Bros is currently producing the hit Wonder Woman. It’s also the entity that has successfully adopted the Harry Potter. Finally, Turner Broadcasting is another part of Time Warner. This is the part that includes the likes of TNT network and CNN. The lead antitrust regulator with the justice department Makan Delrahim told the court that the merger would not be good for customers. The merger would play a huge role in weakening competition according to Mr. Delrahim. As for AT&T, it didn’t hide its frustration and said that it would challenge the decision in court. At the moment, AT&T says that the two are not in the same niche meaning they don’t compete directly. The Justice Department, on the other hand, said in an interview that it was willing to listen to an offer between the two companies.

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