Judge clears AT&T’s merger plans

A US federal judge approved on Tuesday the $85-billion (R1.1-trillion) merger of wireless and broadband giant AT&T with media-entertainment conglomerate Time Warner, delivering a stinging rebuke to Donald Trump’s administration in its first major antitrust court case.

US District Judge Richard Leon said the government had failed to meet its burden of proof that the tieup between the largest US pay-TV operator and the media entertainment giant would harm competition.

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

Leon said the case fell short on all counts and warned the government against seeking to hold up the deal with an appeal, saying that would cause “irreparable” harm to the two companies whose tie-up has been delayed for a year and a half.

“There would be no irreparable harm to the government [with a delay], only to the companies,” Leon told the packed courtroom.

“The government has taken best shot and lost.”

Leon’s 172-page ruling was a total victory for the companies. It said the government failed to back up its three theories of harm to consumers from the mega-merger.

He maintained that the government’s claim that pay TV costs would rise from the tie-up was based on “speculative” logic and that its study from an expert witness was its contradicted by other evidence from the government.

Daniel Petrocelli, who led the legal team for the two companies, told reporters outside the courthouse that the decision marked a “sound and proper” repudiation of the government’s case.

“We’re disappointed that it has taken 18 months to get here but we’re relieved that it’s finally behind us,” he said.

He said the ruling “stands as a testament to the wisdom of the combination of these two great companies and how it will benefit consumers for generations to come”.

AT&T general counsel David McAtee said in a statement he was pleased with the outcome and expected the deal would be closed by June 20. — AFP

Picture: AFP NEW ERA: A federal judge has ruled AT&T can move forward with its $85-billion acquisition of Time Warner, which the US Justice Department had sought to block