Several U.S. senators have called on AT&T to tell them how its merger with Time Warner Inc. would benefit the public. They signed a letter to the telecommunications giant after it disclosed plans to avoid a Federal Communications Commission review of this transaction.
The signatories included 13 Democrats, such as Elizabeth Warren, Al Franken, Bernie Sanders, Cory Booker and Ed Markey. They requested that AT&T compile a statement of public interest by mid-February. The senators asked it to explain how the merger would affect competition, reliability and freedom of speech.
Their letter expressed concerns about the potential impact of the acquisition as well. It noted that AT&T currently ranks as the biggest telecom business and television service provider on Earth. The statement cautioned that this merger may result in higher prices and fewer TV programming options.
Democratic senators also highlighted possible negative consequences for competitors. They warned that AT&T may favor Time Warner shows and put other content producers at a disadvantage. This could make it more difficult for relatively small firms to create programs that reach large audiences.
Company's Response
An AT&T statement contradicted the senators' warnings. It explained that the merger would provide customers with additional TV choices, help them gain access to wireless high-speed internet connections and increase competition. It also indicated that the company will gladly respond to any questions regarding the transaction.
The telecom corporation recently revealed its intention to avoid an FCC review. It plans to buy Time Warner without purchasing any government-licensed television stations. Time Warner would sell them beforehand. Consequently, only the Justice Department needs to review the massive merger.
Federal officials will evaluate the deal to ensure that it doesn't create a monopoly. However, antitrust assessments remain much less stringent than FCC reviews. They don't require companies to demonstrate that business acquisitions will benefit customers.
President Trump and certain shareholders have also voiced opposition to the merger. If AT&T succeeds, it will own Turner Broadcasting, HBO, DC Comics, Warner Brothers, TNT and CNN. Time Warner Cable was recently acquired by Charter Communications and would not play a role in this deal. DirecTV and Cricket Wireless are subsidiaries of AT&T.
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