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AT&T's Merger Battle Against DOJ Sees a Setback

AT&T's merger battle against the Trump DOJ has faced a setback. As noted previously, AT&T had hoped to get Trump DOJ antitrust head Makan Delrahim on the stand, apparently believing they could use him to prove that Trump unduly pressured the DOJ to hamstring the deal. AT&T lawyers had been looking for proof that pressure from Rupert Murdoch and Trump's disdain for CNN -- not consumer welfare -- are motivating the DOJ's lawsuit to stop the deal.

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AT&T's interest in putting Delrahim on the stand stems from reports indicating that he didn't oppose the deal before joining the DOJ. AT&T was also looking to access communications between the White House and the DOJ proving coordination.

But in an order (via Ars Technica) US District Judge Richard Leon argued that AT&T failed to prove "discriminatory effect and discriminatory intent," and therefore can't obtain access to the communications.

"Defendants have fallen far short of establishing that this enforcement action was selective--that is, that there 'exist persons similarly situated who have not been prosecuted,'" Leon said. Leon argued that the communications already obtained by AT&T between the DOJ and Trump White House had already failed to show any "'untoward' communications between the White House and the Antitrust Division," Leon wrote.

“There was no selective enforcement,” Justice Department lawyer Craig Conrath told Reuters. "The president is unhappy with CNN. We don’t dispute that. But AT&T wants to turn that into a get-out-jail-free card for their illegal merger."

Regardless of the motivation, consumer advocates believe the merger should be blocked because it gives more power to a company with a long history of anti-competitive behavior. They argue with greater leverage AT&T will make it harder for streaming competitors to license the content they need to compete with AT&T's own streaming offerings. They also worry AT&T will use the death of net neutrality and regulatory oversight to hamstring competitors in other, more creative ways.

We'll see if AT&T can offer up more solid evidence of Trump administration pressure when the case heads to court March 19 in the US District Court for the District of Columbia.

Most recommended from 9 comments



GlennLouEarl
3 brothers, 1 gone
Premium Member
join:2002-11-17
Richmond, VA

3 recommendations

GlennLouEarl

Premium Member

From past experience

we already know the DoJ doesn't much care about consumer protection any more than the FCC does. So, the question is: in what way does the DoJ see this merger as "illegal"?

It's a sad day when you feel more inclined to agree with at&t on anything, but in this case it's a matter of actual govt. corruption vs potential corporate hijinks.