The U.S. Department of Justice (DOJ) filed a civil antitrust lawsuit to block AT&T’s $85 billion proposed acquisition of Time Warner.
AT&T (NYSE:T) was informed by the Justice Department earlier this month that the No. 2 U.S. wireless carrier must sell off DirecTV or Turner Broadcasting cable channels, which includes CNN, a network frequently criticized by President Trump.
In an exclusive interview with FOX Business’ Liz Claman, Cox Communications president Pat Esser said media and big tech companies are being redefined.
"The Department of Justice is defining what antitrust means in this new world going forward where everyone is connected and I think we are going to see how this plays out. I am sure AT&T has a very strong position about it,” Esser said exclusively on “Countdown to the Closing Bell.”
The DOJ said in a statement released Monday that the mega-merger would “substantially lessen competition,” resulting in an increase in prices and “less innovation” for millions of U.S. consumers.
“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,” said Assistant Attorney General Makan Delrahim of the Department’s Antitrust Division.
Esser said the faceoff between AT&T and the DOJ over the merger with Time Warner (NYSE:TWX) will redefine antitrust laws.
“We’re going to get a new a definition of what antitrust is between two companies the size of Time Warner entertainment and AT&T/DirecTV and we’re going to find out where those lines get drawn,” he said.