Future of AT&T-Time Warner Deal Is in Judge’s Hands

Author: Cecilia Kang / Source: New York Times

WASHINGTON — Lawyers faced off over the future of AT&T’s $85.4 billion blockbuster merger with Time Warner for a final time in a courtroom on Monday, sparring over what the deal would mean to consumers.

The Justice Department, which sued to block the deal, argued that the merger would cost people millions of dollars a year by limiting competition.

If the judge does approve the deal, the government said, the court should force the companies to sell off certain business lines to protect consumers.

But the companies countered that the government had failed to make its case. They said consumers would benefit from the merger because it would allow Time Warner and AT&T to compete more effectively against Silicon Valley companies like Google and Netflix.

“The only lessening of competition that would occur is if this merger is blocked,” said Daniel Petrocelli, the lead lawyer for AT&T and Time Warner.

The judge, Richard J. Leon of United States District Court for the District of Columbia, is expected to rule on the case on June 12. He has given little indication of his thinking throughout the trial, and he gave no sign of his leanings on Monday, either.

The six-week courtroom battle, featuring top executives and glimpses of trade secrets, has been one of the most closely watched antitrust cases in years. It has the potential to reshape the fast-changing telecom and entertainment landscape, which is facing new competition from tech companies.

The judge’s opinion could also help set the course for antitrust regulation in the years ahead. A victory for the companies could embolden executives to pursue new deals. A government win could slow future deal-making. On Sunday, T-Mobile and Sprint announced a merger to better compete against AT&T, in a deal that is also expected to face close antitrust scrutiny.

The case has centered on the question of harm to consumers and whether the merger would lead to price increases. The Justice Department presented several theories…

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