|By Kramer Phillips | 2 years ago|
In a move that surprised many, the Justice Department has chosen to appeal the merger of AT&T and Time Warner. This revelation comes after a court document was filed on Thursday.
The decision surprised AT&T’s General Counsel, David McAtee, who said, “We are surprised that the DOJ has chosen to [file an appeal] under these circumstances. He also said that he was ready and willing to fight the appeal.
This development comes after a judge approved the $85.4 billion deal in a federal court. According to the Justice Department, this decision was not ideal, and it expressed concerns about monopolization and a “less competitive and innovative” television market for paying customers.
That being said, U.S. District Court Judge Richard Leon decided that, in the end, the government failed to convincingly make its case that such a deal would in fact decrease competition.
Ever since 2016 when the deal was proposed, AT&T has argued that the acquisition of that Time Warner would actually lead to more competition against companies like Amazon and Netflix.
AT&T is known for its role as a top wireless provider in the United States and stated the merger would allow them to satisfy customers by bundling entertainment and mobile services in one package.