Swift Opposition to Resurrection of AT&T Giant

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Over three decades ago, such was AT&T’s monopoly over the nation’s communications networks that the government forcefully shattered its empire. Now, as one of its successors again seeks a formidable business empire by buying Time Warner, lawmakers, analysts and advocacy groups are closely watching to see if the union, or any that follow in its wake, poses harm to consumers.

Reaction to AT&T’s $85.4 billion purchase was swift — and, outside of Wall Street, full of skepticism. Much of the concern was rooted in how consumers have fared since Comcast bought NBCUniversal, a deal that provided a template for the consolidation of media and telecommunications. The top Republican and Democrat on the Senate Judiciary Committee’s antitrust subcommittee said they planned to hold a hearing on the deal. And even competitors like Disney quickly chimed in, urging regulators to pay close attention in their review. At issue is whether AT&T, with over 100 million subscribers across its wireless, broadband and DirecTV offerings, will somehow favor its own customers when it comes to HBO, CNN and Warner Bros. properties like the Batman and Harry Potter franchises. Some consumer rights advocates also questioned how AT&T will use the viewership data that it gathers from its subscribers, particularly if the Time Warner acquisition drives more consumers to AT&T’s services.


Swift Opposition to Resurrection of AT&T Giant AT&T-Time Warner face uphill battle in Washington (Financial Times)