The Justice Department is suing AT&T.
What is this about?
AT&T is trying to buy Time Warner. That’s because AT&T doesn’t just want to provide you Internet – it also wants to serve up the video content you’re streaming. And Time Warner owns channels like HBO, CNN, and TNT.Earlier this month, there were reports that the DOJ wouldn’t approve the deal unless AT&T dropped a major asset like DirecTV or Turner Broadcasting (which owns CNN).
The DOJ says this takeover would give AT&T too much power. And let it do things like charge competitors and customers way more for popular TV shows.
What does AT&T say?
That this lawsuit doesn’t hold up. The company’s CEO also addressed rumors that this may be President Trump’s way of retaliating against CNN for what the prez calls unfair coverage. He said while he doesn’t know what role CNN plays in all this, he’s not surprised people are asking since it’s a change in DOJ policy.
What’s happening now?
The DOJ has sued to block the merger, saying it violates antitrust laws. AT&T says, ‘we’ll see you in court.’
This merger looked like it was good to go, since it combines companies from two different industries – something the US gov usually allows. Now, this could be one of the biggest antitrust cases in decades.