U.S. Department of Justice Files Appeal to Block AT&T and Time Warner Merger

[Brandonjr36]

Good hopefully they reverse it. Should’ve been voided the moment they started raising administrative fees.

 

[old-wiz]

Someone forgot to send the bribe money to the DOJ. These mergers always result in higher prices for consumers, more money to stockholders, and layoffs due to "consolidation" of resources. Don't know why DOJ would complain now - they are supposed to be owned by corporations just like the rest of the federal government.

 

[69Mustang]

Dammit man!! Prolly shoulda held off a few weeks on jacking up them rates.

-Some AT&T exec most likely

 

[Terrinb]

GREAT news.. it makes me have faith in the US government!

I’m worried about you if that’s all it takes. I think the merger was a bad idea for consumers, but Trump just hates Time Warner owned News outlets reporting bad things about him.

 

[BB8]

GREAT news.. it makes me have faith in the US government!

It makes you have faith that our government is wasting a ton of taxpayer dollars to appeal a case they will lose again?

 

[coachgq]

It makes you have faith that our government is wasting a ton of taxpayer dollars to appeal a case they will lose again?

And forcing ATT to spend a ton of money on lawyers and then turn around and charge consumers more to make up that money that they had to pay out.

 

[Mac 128]

Double jeopardy only applies to individuals, not corporations.

But I thought corporations were considered individuals under the law?

The government is screwing investors who held Time Warner in non-retirement (taxable) accounts by not objecting BEFORE the acquisition completed. I have never seen this happen before in this way.

While DoJ could potentially succeed in unwinding the acquisition/merger ... they cannot unwind transactions that individual investors, mutual funds, and retirement advisors etc have made to compensate for the taxable gain generated by the conversion. A portion of the acquisition was cash, the rest a conversion to T shares. The cash portion - received a full month ago - is a taxable long term gain in general. Investors who later generated losses to offset that gain to avoid tax do not have the luxury of undoing those actions.

Just a totally incompetent action by the DoJ to do this after the transaction completed, rather than immediately. I trust that they will fail, and get slapped on the wrist for not making a timely objection.

It's not about unwinding the merger, it's about having ATT over the barrel and forcing them to divest CNN.
[doublepost=1531439425][/doublepost]

It makes you have faith that our government is wasting a ton of taxpayer dollars to appeal a case they will lose again?

Not only that, this must make FOX and Sinclair very upset that DOJ is not leaving this alone so Murdock can sell his studio to the highest bidder, and Sinclair can gobble up Tribune for a monopolistic control of a massive chunk of the US broadcast market.

 

[sw1tcher]

Good hopefully they reverse it. Should’ve been voided the moment they started raising administrative fees.

As much as I hate AT&T, there's zero evidence that their recent increase in administrative fees has anything to do with the merger.

Voiding the merger solely because AT&T raised their administrative fees would mean that AT&T is being presumed guilty until they can prove their innocence. Things don't work that way.
[doublepost=1531441762][/doublepost]

I've changed my mind. Initially it was more of a hypothetical "will this lead to a monopoly?" and now they have new evidence more along the lines of "this is a monopoly".

How is this a monopoly?

Also keep in mind that monopoly =/= illegal

Apple has a monopoly on macOS computers, iOS smartphones, App store for their devices, etc.

 

[Tech198]

I would see this only as to 'sweeten' the deal to merge..

"Shortly after the merge, why don't we swiftly introduce some 'candy' as well" for customers to chomp on.

It worked

 

[FelixDerKater]

Fee increase study commissioning fee.

 

[urnotl33t]

How is this a monopoly?

Also keep in mind that monopoly =/= illegal

Apple has a monopoly on macOS computers, iOS smartphones, App store for their devices, etc.

Correct. A natural monopoly is perfectly fine. Microsoft had a monopoly as well and that was ok. It’s only when you begin to use the monopoly in one market to gain the monopoly in another market does it become illegal and then violate the Sherman anti-trust act.

Until then, enjoy your monopoly, but you still have to play by a different set of rules tho, and everyone WILL be watching!

 

[Brandonjr36]

As much as I hate AT&T, there's zero evidence that their recent increase in administrative fees has anything to do with the merger.

Reversing the merger solely because AT&T raised their administrative fees would mean that AT&T is being presumed guilty until they can prove their innocence. Things don't work that way.
[doublepost=1531441762][/doublepost]

How is this a monopoly?

Also keep in mind that monopoly =/= illegal

Apple has a monopoly on macOS computers, iOS smartphones, App store for their devices, etc.

Oh yeah It’s just a coincidence. That they raised the administration fees and raised the price of directv now $5 extra a month. As well as changing the plans to unlimited enhanced plus/raising the price. All 3 are just a coincidence huh?

 

[pipis2010]

All this merging and acquisitions is part of the New World Order to take over the entire world. So corrupt that all these big corporations and government are controlled by the bankers of the world. I hope this deal doesn't go through. People need to do some research and get there news from independent sources instead of the mainstream media thats owned by these corrupt bankers that brainwashes people out there. We have a choice everyone. People need to wake up and realize what's going on in this world that the media doesn't you to know about.

In America? Funny...
[doublepost=1531458480][/doublepost]

All this merging and acquisitions is part of the New World Order to take over the entire world. So corrupt that all these big corporations and government are controlled by the bankers of the world. I hope this deal doesn't go through. People need to do some research and get there news from independent sources instead of the mainstream media thats owned by these corrupt bankers that brainwashes people out there. We have a choice everyone. People need to wake up and realize what's going on in this world that the media doesn't you to know about.

The whole world is run by 5-10 people...do your research and you’ll see what I mean. If this is New World Order I can’t tell, we’ll see in future...

 

[sw1tcher]

Oh yeah It’s just a coincidence. That they raised the administration fees and raised the price of directv now $5 extra a month. As well as changing the plans to unlimited enhanced plus/raising the price. All 3 are just a coincidence huh?

Are the timing of the price increases fishy? Sure. But coincidence is not proof.

How do we know AT&T wouldn't have increased prices anyways if the merger didn't get approved?

DirecTV Now launched on Nov. 30, 2016 at $35 per month. The $5 price increase goes into effect in August 2018. That means DirecTV Now will have gone 20 months without a price increase. How long did you expect them to keep that price?

YouTube TV increased their monthly price by $5 back in March 2018. Sling TV announced their $5 price increase on June 28, 2018. Amazon increased their annual Prime membership by $20 back in May 2018. So you see, AT&T isn't alone in raising prices. Content creation and production costs are and have been going up. Those costs are bound to get passed onto the consumer at some point.

If AT&T had held off on increasing the DirecTV Now price for 6 months (until Jan. 2019), would it have appeared less suspicious to you and others? Probably not.

For those looking for a lower priced streaming tv option, AT&T has their new WatchTV service for $15 per month.

Are we also going to blame this month's $5 price increase on AT&T's grandfathered unlimited plan on the merger too (even though AT&T has raised the price by $5 each year for the past 3 years)?

 

[Brandonjr36]

Are the timing of the price increases fishy? Sure. But coincidence is not proof.

How do we know AT&T wouldn't have increased prices anyways if the merger didn't get approved?

DirecTV Now launched on Nov. 30, 2016 at $35 per month. The $5 price increase goes into effect in August 2018. That means DirecTV Now will have gone 20 months without a price increase. How long did you expect them to keep that price?

YouTube TV increased their monthly price by $5 back in March 2018. Sling TV announced their $5 price increase on June 28, 2018. Amazon increased their annual Prime membership by $20 back in May 2018. So you see, AT&T isn't alone in raising prices. Content creation and production costs are and have been going up. Those costs are bound to get passed onto the consumer at some point.

For those looking for a lower priced streaming tv option, AT&T has their new WatchTV service for $15 per month.

Are we also going to blame this month's $5 price increase on AT&T's grandfathered unlimited plan on the merger too (even though AT&T has raised the price by $5 each year for the past 3 years)?

They shouldn’t be able to raise prices on us when we’re on contract. As in the administration fees, I think it’s BS.

 

[tennisproha]

Edit: I've changed my mind. Initially it was more of a hypothetical "will this lead to a monopoly?" and now they have new evidence more along the lines of "this is a monopoly".

lol gimme a break.

 

[CaTOAGU]

Double jeopardy only applies to individuals, not corporations.

Double jeopardy is a concept in criminal law that forbids someone from being put on trial for the same crime twice. This is an appeal of a decision in a lower court to a higher court, perfectly legal.

 

[sw1tcher]

They shouldn’t be able to raise prices on us when we’re on contract. As in the administration fees, I think it’s BS.

I don't disagree.

Unfortunately, everyone's raising prices and trying to sneak in small fee increases.

https://www.consumerreports.org/tv-service/your-cable-bill-probably-went-up-more-than-you-think/

Most pay-TV companies announced modest price hikes in 2018, but there are also new hidden fees

It’s probably no surprise that pay-TV packages are more expensive than in 2017. Prices rise every year. But what's less obvious is that while providers announced only modest increases in 2018—generally in the 3 to 4 percent range—they're continuing to impose add-on charges, such as “broadcast TV fees” and “regional sports fees” that are quietly inflating your cable bill each month.

And often these additional fees can be imposed even if you're locked into a promotional rate for TV service.

According to its most recent report, the Federal Communications Commission's Media Bureau said that TV providers are adding the extra fees to cover their rising costs so they can continue to promote relatively attractive prices.

The cable companies we contacted said the price hikes are mainly driven by the rising costs they face for carrying traditional broadcast networks, such as CBS and Fox, and regional sports channels. According to some analyst estimates, these costs have climbed between 8 and 10 percent in each of the past four years.

How Much Your Bill Is Rising

AT&T: AT&T U-verse video subscribers will now pay $2 to $8 more per month on most video packages. The price hike doesn't affect AT&T's U-basic plan. The company is also boosting its broadcast TV surcharge from $5 to $6 per month. Like other companies we contacted, AT&T blames the increased cost of acquiring programming for the price hike.

Comcast: Comcast prices went up across the board in January. Most of the bundled package prices have risen by about $5 a month, and the company’s “broadcast fee" has risen by $1, to $8 per month. Other fees are also on the rise. The charge for regional sports is moving from $5 to either $6.50 or $6.75 a month, depending on the market. Missed payment fees are up $.50 to $10.

Cox Communications: At Cox, price increases that kicked off in January range from $1 per month—for its more basic plan—to $5 per month for its bigger TV packages. The company's broadcast fee jumped from $4 to $7.50 a month, though, and regional sports surcharges have moved from $4.20 to $5.15 on average. Customers who are paying promotional rates will keep them until those deals are scheduled to expire.

The rising cost of programming content continues to be the main driver for video price increases, a spokesperson told us.

 

[graywolf323]

The government is screwing investors who held Time Warner in non-retirement (taxable) accounts by not objecting BEFORE the acquisition completed. I have never seen this happen before in this way.

While DoJ could potentially succeed in unwinding the acquisition/merger ... they cannot unwind transactions that individual investors, mutual funds, and retirement advisors etc have made to compensate for the taxable gain generated by the conversion. A portion of the acquisition was cash, the rest a conversion to T shares. The cash portion - received a full month ago - is a taxable long term gain in general. Investors who later generated losses to offset that gain to avoid tax do not have the luxury of undoing those actions.

Just a totally incompetent action by the DoJ to do this after the transaction completed, rather than immediately. I trust that they will fail, and get slapped on the wrist for not making a timely objection.

AT&T completed the merger within days of the original decision, filling appeals of decisions takes time so there are practically no way the DOJ could have before the acquisition completed

 

[imola.zhp]

You sure about that? Time Warner INC owns a lot content you watch. Not all of their holdings say “Time Warner” on it.

Interesting, I thought they were just a cable company.

 

[OldSchoolMacGuy]

But I thought corporations were considered individuals under the law?

In some cases they're treated like it but they aren't actually considered to be individuals.

 

[cmwade77]

Let's see here, AT&T promised that prices would not increase as a result of the merger, then days after the merger is complete they raise prices and now AT&T is surprised that the DOJ has filed an appeal when it is clear AT&T lied to the public, lied to the government and lied to the court, perhaps even committed perjury.

Hmm, yeah, I wonder why the DOJ fiked an appeal? Seriously, you can't lie about your intentions in a merger and expect to get away with it.
[doublepost=1531491046][/doublepost]

It makes you have faith that our government is wasting a ton of taxpayer dollars to appeal a case they will lose again?

Actually, they might just win, since AT&T clearly lied to the courts about prices not going up.
[doublepost=1531491125][/doublepost]

I don't disagree.

Unfortunately, everyone's raising prices and trying to sneak in small fee increases.

https://www.consumerreports.org/tv-service/your-cable-bill-probably-went-up-more-than-you-think/

Since I don't have cable, nope. And when someone increases their fees, that's when I start to look at new companies.

 

[Mac 128]

Let's see here, AT&T promised that prices would not increase as a result of the merger, then days after the merger is complete they raise prices and now AT&T is surprised that the DOJ has filed an appeal when it is clear AT&T lied to the public, lied to the government and lied to the court, perhaps even committed perjury.

Hmm, yeah, I wonder why the DOJ fiked an appeal? Seriously, you can't lie about your intentions in a merger and expect to get away with it.
[doublepost=1531491046][/doublepost]
Actually, they might just win, since AT&T clearly lied to the courts about prices not going up.
[doublepost=1531491125][/doublepost]
Since I don't have cable, nope. And when someone increases their fees, that's when I start to look at new companies.

That’s not what was promised.

And the fact you can look for new companies means there’s no issues with the merger for the consumer.

 

[sw1tcher]

Let's see here, AT&T promised that prices would not increase as a result of the merger, then days after the merger is complete they raise prices and now AT&T is surprised that the DOJ has filed an appeal when it is clear AT&T lied to the public, lied to the government and lied to the court, perhaps even committed perjury.

Hmm, yeah, I wonder why the DOJ fiked an appeal? Seriously, you can't lie about your intentions in a merger and expect to get away with it.

Actually, they might just win, since AT&T clearly lied to the courts about prices not going up.

Could you show me where AT&T said/promised they would not raise prices?

 

[69Mustang]

Could you show me where AT&T said/promised they would not raise prices?

"The evidence overwhelmingly showed that this merger is likely to enhance competition substantially, because it will enable the merged company to reduce prices, offer innovative video products, and compete more effectively against the increasingly powerful, vertically integrated 'FAANG' [Facebook, Apple, Amazon, Netflix, and Google] companies," AT&T told US District Judge Richard Leon in the brief.

"There is no sound evidence from which the Court could fairly conclude that retail pay-TV prices are likely to increase," AT&T said in that same filing. - Ars Technica