US Department of Justice to move against AT&T-Time Warner merger
The proposed acquisition of Time Warner by US telecoms giant AT&T will face a challenge from the Department of Justice on antitrust grounds.
The DoJ has filed a lawsuit against the merger, saying it would reduce competition and drive prices higher.
AT&T had offered $85bn to take over Time Warner, which owns media outlets CNN and HBO.
Legal counsel for AT&T have indicated that the company will go to court if the deal is challenged by the DoJ, with a lengthy legal battle likely to ensue.
In the lawsuit, assistant attorney general Makan Delrahim argued that consumers would see their options greatly reduced if the merger were to go ahead.
"This merger would greatly harm American consumers. It would mean higher monthly television bills and fewer of the new, emerging innovative options that consumers are beginning to enjoy," the official said.
AT&T have said that blocking the deal would be a departure from US competition practice. Some in the company have suggested President Donald Trump’s disdain for CNN may be a contributing factor behind such a decision.
"There's been a lot of reporting and speculation whether this is all about CNN. And frankly I don't know. Nobody should be surprised the question keeps coming up," chief executive Randall Stephenson said.