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US appeals judge's order allowing AT&T to buy Time Warner

AFP  |  Washington 

The has appealed last month's ruling from a allowing to buy in a mega-deal that could reshape the

A notice of appeal was filed yesterday with a federal appeals court one month after rejected the government's efforts to block the USD 85 billion deal following a weeks-long antitrust trial.

Leon ruled the government had failed to meet its burden of proof that the tie-up between the largest US pay-TV operator and the would harm competition. The decision delivered a stinging rebuke to in its first major antitrust court case.

The two companies completed the merger in the days following the ruling, so if the government prevails, the appeals court could order the deal undone or require to sell off parts of said it was prepared to defend the case on appeal.

"The (lower) court's decision could hardly have been more thorough, fact-based, and well-reasoned," said a statement from David McAtee, AT&T's

"While the losing party in litigation always has the right to appeal if it wishes, we are surprised that the has chosen to do so under these circumstances. We are ready to defend the (lower court ruling) at the "

The tie-up which was announced in late 2016 brings together AT&T's wireless and networks and its subscription service with the of Time Warner, which include and other Turner cable channels, Cartoon Network, premium channel and the studios.

Critics of the deal have argued the court approval offers an effective green light to other major deals that could end up boosting prices and hurting consumers.

AT&T and have argued the tie-up is needed to achieve size and scale to compete against like and emerging tech firms getting into video.

Trump had previously denounced the AT&T deal, vowing that his administration would block it because it would concentrate corporate power unacceptably.

This fuelled speculation that Trump could be retaliating due to critical coverage of his administration from broadcaster CNN, which was part of Time Warner.

Late last month, antitrust officials approved Walt Disney's proposed USD 71.3 billion purchase of key assets, likely to lead to more consolidation in the sector.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, July 13 2018. 03:40 IST
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