US, AT&T fire opening salvos as govt seeks to block merger
WASHINGTON — The government and AT&T exchanged opening salvos in a federal trial Thursday as the U.S. seeks to block the telephone giant from absorbing Time Warner, in a case that could shape how consumers get — and how much they pay for — streaming TV and movies.
The Trump Justice Department has sued to block the $85 billion deal, saying it would hurt competition and consumers would have to pay more to watch their favourite shows, whether on a TV screen, smartphone or tablet.
The combination of the wireless, broadband and satellite giant with Time Warner — home to the CNN, HBO and TBS networks as well as coveted sports programming — would harm competition and dampen innovation, Craig Conrath, the lead Justice Department attorney in the case, insisted in opening arguments.
“The evidence will show that this merger would hurt … pay-TV consumers,” Conrath said, noting they number some 90 million households in the U.S.