6 key themes emerging from AT&T’s landmark antitrust trial

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We're now almost four weeks into AT&T's historic court battle with the government over its $85 billion merger with Time Warner. Here's an overview of the major themes emerging in this pivotal case that could shape the future of connectivity, entertainment and corporate consolidation:

  1. “Must-have” TV: Much of the legal debate so far has revolved around the popularity of Time Warner's content. The Justice Department is arguing that AT&T could “weaponize” CNN or TNT after the merger by withholding those channels from other cable companies. 
  2. The new skinny bundles of streaming TV: these novel services could be harmed the most by the merger, according to the DOJ. 
  3. Surveys and economic predictions: According to the DOJ's modeling, the price of subscription television could go up by 45 cents a month if the deal is approved. 
  4. “Baseball-style” arbitration; To mitigate some of the alleged harms of the merger, AT&T sent 1,000 letters in 2017 to competing TV services, containing an offer of arbitration: If, after the merger, the competing providers felt AT&T-Time Warner was gouging them, they could ask a third-party arbitrator to step in, evaluate a proposal from either side, and then pick one based on how it compared with “fair market value.” In return, AT&T would agree not to go dark with its channels.
  5. Comcast-NBCU: The DOJ highlighted research by some AT&T officials on the looming sunset of certain regulatory restrictions on Comcast, the cable giant that also owns NBCUniversal.
  6. The case is dragging on much longer than initially expected.

 


6 key themes emerging from AT&T’s landmark antitrust trial