The US Department of Justice has appealed against the federal court approval of AT&T's takeover of Time Warner. AT&T said it was surprised by the decision and would defend the merger in court again.
The DoJ gave notice to the court of its attention to appeal but has yet to file arguments. Its main argument against the merger in the previous case was the possible negative impact on the pay-TV market, where AT&T could restrict access to Time Warner's channels and content for its own benefit and drive up prices.
AT&T said the original court ruling "could hardly have been more thorough, fact-based, and well-reasoned". The company has already completed the merger with Time Warner and started integration. It may need to keep the company separate now until the appeal is heard.
Fox Business reported earlier that the DoJ was planning an appeal but faced resistance from the Solicitor General, who must sign off on such cases. The broadcaster's sources said the DoJ is seeking to show a stronger stance against vertical mergers, where pay-TV distributors merge with media companies, a situation the DoJ believes leads to higher prices.
News of the appeal was welcomed by NGO Public Knowledge. The group noted that since the merger, AT&T had already raised prices for its DirectTV Now video service, increased administrative fees for mobile customers and raised the price of some of its wireless plans while removing the HBO subscription previously included. The initial court decision approving the merger "contained numerous errors, and we believe the DOJ’s position should be vindicated", Public Knowledge said in a statement.
