Take the pledge to vote

For a better tommorow#AajSawaroApnaKal
  • I agree to receive emails from News18

  • I promise to vote in this year's elections no matter what the odds are.
  • Please check above checkbox.


Thank you for
taking the pledge

Vote responsibly as each vote counts
and makes a diffrence


Issued in public interest by HDFC Life. HDFC Life Insurance Company Limited (Formerly HDFC Standard Life Insurance Company Limited) (“HDFC Life”). CIN: L65110MH2000PLC128245, IRDAI Reg. No. 101 . The name/letters "HDFC" in the name/logo of the company belongs to Housing Development Finance Corporation Limited ("HDFC Limited") and is used by HDFC Life under an agreement entered into with HDFC Limited. ARN EU/04/19/13618
LIVE TV DownloadNews18 App
News18 English
News18 » Business
2-min read

Court's AT&T-Time Warner Ruling 'Clearly Erroneous': US Govt

The deal brings together AT&T's networks and its DirecTV subscription service with the media assets of Time Warner.


Updated:August 7, 2018, 7:41 AM IST
Court's AT&T-Time Warner Ruling 'Clearly Erroneous': US Govt
FILE PHOTO: A combination photo shows the Time Warner shares price at the New York Stock Exchange and AT&T logo in New York, NY, U.S., on November 15, 2017 and on October 23, 2016 respectively. REUTERS/Lucas Jackson (L) and REUTERS/Stephanie Keith/File Photos - RC132156B010

The US Justice Department attacked Monday a court ruling that allowed June's $85 billion mega-merger between AT&T and Time Warner to go forward, saying a federal judge had relied on faulty economics.

Federal prosecutors are asking a US appeals court to reverse the decision, which they say ignored the fact that American consumers are likely to pay hundreds of millions more per year for television services.

The June decision by US District Judge Richard Leon had dealt a stinging defeat to the Justice Department and handed a total victory to the companies.

But, in a brief filed Monday with the court, the agency said Leon had ignored economic theory by finding that Time Warner would not enjoy greater bargaining power over pay-TV distributors once the merger was complete -- possibly withholding highly popular content from HBO, CNN and others in order to extract higher fees from distributors.

"The court agreed that Time Warner enjoyed bargaining leverage before the merger but it illogically and erroneously concluded that Time Warner will have no increased leverage post-merger because blackouts are 'infeasible' so Time Warner cannot credibly threaten them," the brief said.

"The court's reasoning makes no sense, rendering clearly erroneous its analysis of the evidence on increased bargaining leverage."

The case had been closely watched as setting a benchmark for other big corporate mergers in the media and communications sector.

Competing with Netflix

In his original ruling, Leon had said the case fell short on all counts and urged the government not to lodge an appeal that would cause "irreparable" harm to the two companies after a year and a half of delay.

He maintained that the government's claim that pay TV costs would rise from the tieup was based on "speculative" logic and that its study from an expert witness was contradicted by other evidence from the government.

The deal brings together AT&T's networks and its DirecTV subscription service with the media assets of Time Warner.

The companies have argued anti-trust concerns are unjustified because they are not in the industrial sectors.

AT&T has promised to let the Time Warner properties, renamed Warner Media, operate independently until 2019.

AT&T and Time Warner argue they need more scale to compete with online rivals like Netflix and Amazon, as well as with Silicon Valley giants like Apple, Facebook and Google, which are expanding in the rapidly evolving sector.

President Donald Trump had previously denounced the AT&T deal, vowing that his administration would block the merger because it would concentrate corporate power.

This fueled speculation that Trump could be retaliating due to critical coverage of his administration from news broadcaster CNN, a Time Warner property.

Get the best of News18 delivered to your inbox - subscribe to News18 Daybreak. Follow News18.com on Twitter, Instagram, Facebook, TikTok and on YouTube, and stay in the know with what's happening in the world around you – in real time.

Subscribe to Moneycontrol Pro and gain access to curated markets data, trading recommendations, equity analysis, investment ideas, insights from market gurus and much more. Get Moneycontrol PRO for 1 year at price of 3 months. Use code FREEDOM.

Read full article
Next Story
Next Story

Also Watch

Most Active
Company Price Change %Gain
Yes Bank 61.00 8.35
Indiabulls Hsg 464.60 3.12
IndusInd Bank 1,303.50 -2.41
Bajaj Finance 3,091.75 -0.72
HDFC Bank 2,150.50 -1.09
Company Price Change %Gain
Yes Bank 61.20 8.70
Indiabulls Hsg 464.55 3.26
IndusInd Bank 1,302.50 -2.49
Bajaj Finance 3,097.35 -0.66
DLF 145.80 1.04
Top Gainers
Company Price Change %Gain
Yes Bank 61.00 8.35
Indiabulls Hsg 463.60 2.90
UPL 532.25 2.74
Coal India 185.15 2.38
Vedanta 131.50 1.90
Company Price Change %Gain
Yes Bank 60.25 7.02
Coal India 185.10 2.43
Vedanta 129.05 -7.76
Tata Motors 108.80 1.07
TCS 2,237.80 1.03
Top Losers
Company Price Change %Gain
IndusInd Bank 1,303.50 -2.41
ICICI Bank 391.55 -1.89
Maruti Suzuki 6,101.50 -1.72
Cipla 456.30 -1.66
Kotak Mahindra 1,456.65 -1.46
Company Price Change %Gain
IndusInd Bank 1,302.40 -2.49
ICICI Bank 391.60 -1.89
Maruti Suzuki 6,105.25 -1.64
ITC 237.00 -1.29
Kotak Mahindra 1,457.35 -1.35

Live TV

Countdown To Elections Results
To Assembly Elections 2018 Results