Variety

A group of Democratic Reps are seeking documents from Attorney General Jeff Sessions relating to the Justice Department’s decision to file a lawsuit to block AT&T’s planned merger with Time Warner. They are interested in whether the decision was in any way impacted by President Donald Trump’s disdain for CNN, a unit of Time Warner. Makan Delrahim, the chief of the Antitrust Division, denies that the lawsuit was influenced by the White House.

House Communications Subcommittee Chairman Marsha Blackburn (R-TN) introduced network neutrality legislation, the Open Internet Preservation Act, that prohibits internet providers from blocking and throttling content, but does not address whether Internet service providers can create so-called “fast lanes” of traffic for sites willing to pay for it. The legislation also would require that ISPs disclose their terms of service, and ensure that federal law preempts any state efforts to establish rules of the road for internet traffic.

Will AT&T hang up on its quest for Time Warner if it can’t hang on to some of its most valuable assets? Answering that question could become paramount in the company’s effort to secure the $85 billion merger it proposed with Time Warner in October. Turner owns valuable sports rights, sharing with CBS the broadcast of the NCAA’s “March Madness” men’s basketball championship tournament. That event generated a record-setting $1.24 billion in national TV advertising in 2016, according to Kantar, a tracker of ad spending.

Federal Communications Commission Chairman Ajit Pai said that the agency is studying restrictions on media ownership, characterizing a number of the rules as “quite antiquated.” In an interview with Variety, Chairman Pai said that an easing of such restrictions “is one of the issues that is under consideration. We haven’t made any firm determinations there, either.” Many broadcasters have championed the idea of lifting restrictions that limit the number of stations that one entity can own.

Also, in October, President Donald Trump said that he opposed the proposed merger of AT&T with Time Warner, saying that it was too much “power in the hands of too few.” A campaign adviser, Peter Navarro, now director of the National Trade Council, promised that Trump “will break up the new media conglomerate oligopolies that have gained enormous control over our information, intrude into our personal lives.” “We are studying the issue,” Chairman Pai said. “But what I can tell you is that having worked on that question [of media ownership] for a quite a while, I do think that a number of media ownership rules have become quite antiquated.” Asked whether he agreed that there was a problem with media concentration, Pai said that “we obviously have to take a case-by-case look as to the competitive landscape, and so it really depends on the geographic market, the product and service market that we are talking about. If it is a transaction that is involved, what are the competitive implications of the confirmation of that transaction? And so it is hard to opine in the abstract about a situation like that.”