DOJ and AT&T offer closing arguments in antitrust case

The Justice Department made a final pitch against AT&T's $85 billion deal to acquire Time Warner, demanding in federal court that the deal be blocked or that AT&T should be permitted only to buy a portion of the media and entertainment giant. Addressing a packed courtroom that included the chief executives of both companies, Justice attorney Craig Conrath cited economic analyses, industry witnesses and AT&T's own statements to support the government's case opposing the tie-up. The deal will add hundreds of millions of dollars a year to consumers' TV bills, Conrath said, while restricting competition in the television industry. Addressing one of AT&T's key justifications for the deal — the desire to compete with Facebook and Google for ad dollars — Conrath said that the benefits do not outweigh the costs to society. "The fact that AT&T may want to compete in some other market, that doesn't give them a free pass to reduce competition in the pay-TV market," said Conrath. Conrath also laid out a fallback position for the government: If the judge decides not to block the whole deal, he should consider forcing AT&T to make a “partial divestiture,” the lawyer said, meaning the company couldn't hold on to all of Time Warner’s assets.Conrath said Judge Leon could consider allowing AT&T to buy parts of Time Warner, but not the Turner networks, which are a focal point in the government’s case. He also floated the possibility that the judge could require other types of “structural” changes to soften the deal’s impact on consumers.