AT&T’s acquisition of Time Warner may have been approved six months ago, but it isn’t smooth sailing for AT&T yet.
Back in June, the Justice Department took a stand against AT&T’s acquisition of Time Warner, saying that it would have an adverse effect on the pay-TV industry. The acquisition was approved back in June in a trial court decision by U.S District Judge Richard Leon.
There are very reasonable concerns about AT&T’s acquisition of Time Warner, especially considering the fact that AT&T owns DirecTV and is planning on developing and releasing their very own streaming service to compete with the likes of Netflix and Amazon. This in itself is not an issue, but rather the staggering amount of content that AT&t would own should the acquisition of Time Warner go through.
Time Warner has control of some powerful assets such as Cartoon Network, CNN, DC Comics, and HBO. Game of Thrones is one of the most popular shows currently on television, and it just so happens to be an HBO show. What AT&T may or may not do with their ownership of the show is anyone’s guess, but fans are rightfully concerned.
Judge Leon roundly rejected the entirety of the Justice Department’s argument, and declared that they failed to provide sufficient evidence that AT&T would in any way hike up the prices rivals would pay for the premium content that they would acquire from Time Warner, or adversely mess with distribution of said content.
Leon’s decision to approve the acquisition was not so much the main focal point of the criticism. Rather, it was his decision to do so without adding on any stipulations whatsoever. In other words, AT&T pretty much has free reign to do what they wish. As unfortunate of a reality as it is, many feel that big businesses cannot really be trusted to regulate themselves fairly, and as such, that Judge Leon’s ruling was a big mistake.
The Department of Justice gave their oral arguments against the acquisition today to a three-judge panel in Washington today, and the preliminary results don’t look good for the Department of Justice. In order for their appeal to go through, they need to prove that their fears for the pay-TV industry are legitimate, and thus far, the three judges appear fairly skeptical.
