AT&T’s merger bid gets warm reception in House

Members of Congress gave a warm reception to AT&T’s $49 billion proposal to buy DirecTV and suggested regulators should let the deal proceed.

Executives from the TV and Internet companies told lawmakers that they need to combine in order to stay competitive with rivals such as Comcast and Verizon, and members from both sides of the aisle seemed to agree.

Rep Hank Johnson (D-GA), the ranking member on the House Judiciary’s Antitrust subcommittee, said “the bulk of the evidence demonstrates that each company primarily serves different markets with different services,” which should protect them from fears about antitrust violations.

“Although the proposed merger represents a concerning trend towards industry consolidation, there is ample evidence that this transaction would create considerable public-interest benefits,” he said. Judiciary Chairman Bob Goodlatte (R-VA) indicated that federal regulators ought to butt out and let the merger move forward.

“It has been demonstrated repeatedly that a free and competitive marketplace yields lower prices, greater innovation, increased investment and better services,” he said. “We should strive to ensure that proposed transactions result in enhanced competitive marketplaces so that the attendant benefits continue to run to consumers.”

AT&T and DirecTV executives faced members of the House and will then head to a follow-up in the Senate later.