Ownership

Charter’s renaming of itself—after a megamerger with Time Warner Cable in 2018—as “Spectrum.” But changing your name doesn’t mean that you aren’t liable for misbehavior under your previous moniker. This is what Charter…er, Spectrum… found recently when, following a lengthy investigation, New York’s attorney general, Eric Schneiderman, filed an extraordinary lawsuit against the company. The company’s 2.5 million New York subscribers (of its 22 million nationwide) have been told they’re getting X (in terms of download and upload speeds) when actually they’re getting a lot less than X.

April 12, the United Church of Christ Office of Communication (UCC OC) continued its effort to block federal rules that are permitting vastly increased consolidation in television, radio, and newspapers in local communities. Following up on its opening brief, filed last Dec, UCC OC and its allies filed their response to the Federal Communications Commission and industry briefs which defend consolidation. In the case of the current suit, UCC OC showed that the church has standing--through harm to its members and harm to its own work caused by the federal rule changes.

Last week, ten state attorneys general filed a lawsuit challenging the merger of T-Mobile and Sprint in a federal district court in New York. While it might not seem unusual for state officials tasked with enforcing antitrust and consumer protection laws to seek to halt the 4-to-3 horizontal merger of two of the nation’s mobile wireless companies, that the Antitrust Division of the Department of Justice did not join the lawsuit was extraordinary.

Sprint and T-Mobile's on-again-off-again $26 billion merger appears to be on again, leaving the combined company poised to become the second-largest wireless provider in the country. Pending all parties agree on concessions, the Justice Department will approve the deal by the end of the week of June 17 or beginning the week of June 24, apparently. The concessions would likely include the sale of Boost Mobile, Sprint's discount, pay-as-you-go wireless service. However, negotiations are still ongoing and the Department of Justice is prepared to litigate if the negotiations fall through.

AT&T has informed employees of plans to cut another 1,800 jobs from its wireline division. AT&T declared more than 1,800 jobs nationwide as "surplus," meaning they are slated to be eliminated in Aug or Sept, said the Communications Workers of America (CWA). AT&T said that most affected union workers will be able to stay at the company in other positions. 

No industry should be free from antitrust scrutiny, including big tech. But the splitting of this tech antitrust review across two federal agencies (the Federal Trade Commission and the Department of Justice's Antitrust Division), despite the many similar competition issues that will be investigated, illustrates the absurdity of having two federal agencies handling civil antitrust enforcement.

A proliferation of antitrust investigations into the tech giants is offering competitors a chance to sound off on claims that their larger rivals are playing dirty. If the Department of Justice or Federal Trade Commission pursue formal investigations into Google, Facebook, Amazon or Apple, they’ll need all the evidence they can get. The companies that compete with them could provide that by the ton. But, speaking up can come at a cost to smaller companies, including angering the powerful corporate giants and signaling to investors that you might go under without government intervention.

Apparently, the Justice Department is moving closer to approving T-Mobile’s $26 billion merger with Sprint, but only if the companies sell multiple assets to create a new wireless competitor. The department is pushing T-Mobile and Sprint to sell a prepaid mobile service and valuable radio frequencies that carry data to wireless devices. The companies have approached three internet and television providers — Dish Network, Charter and Altice — about buying Boost Mobile, a prepaid service owned by Sprint, and airwaves owned by Sprint.

The go-to metric for antitrust enforcers has long been increasing prices. Critics, however, have begun to question whether that approach needs an update, given that tech giants like Google and Facebook offer free services. And this week, some of the nation’s leading antitrust enforcers made clear they’re willing to take a broader view. Justice Department antitrust chief Makan Delrahim said his office will consider factors like privacy violations or free speech restrictions as signs that product quality and market competition have deteriorated.