The government considered today that the judge who approved the merger of telecommunications giant AT&T with Time Warner committed “fundamental errors of economic logic and reasoning”.
In a notice filed today in federal court, the Justice Department said that Judge Richard Leon, the person who approved the purchase operation in mid-June, “misinterpreted and did not apply the fundamental principle of maximizing benefits of the Business”. “To abandon economic theory is to abandon the possibility of a rational antitrust law, which is what the district court has done and that is why its ruling constitutes an error”, wrote the attorneys of President Donald Trump’s Government, commenting Appeal to that judge’s decision.
On June 14, after receiving approval, AT & T formalized the acquisition of Time Warner for a total of 85,000 million dollars, despite opposition from the Government of President Donald Trump. The government had a period of 60 days to appeal the ruling, which was said “disappointed” by the consequences it may have on consumers.
AT & T, which announced the operation in October 2016, has argued that the sector has changed in recent years, with the emergence of digital platforms such as Netflix, YouTube, Google or Hulu.
According to the Government, the merger can generate an increase in the price of services and potentially block content creators from distributing them without paying additional costs. Among the arguments of his appeal, the Justice Department said today that by owning Time Warner, which includes HBO and TBS, AT & T would have “both the incentive and the ability to increase the costs of its rivals and stop the growth of new entrants.” innovators “.
Among the products that can be included in the agreement are the CNN and TNT networks, entertainment platforms such as HBO and the Warner Bros. studios, as well as the retransmission rights of the national basketball and baseball leagues.
Trump has always said that he thought that operation “is not good for the country.”