(WBAP/KLIF News) – Dallas-based AT&T officials are reacting to a lawsuit filed by the Justice Department that seeks to prevent the communications giant from acquiring Time Warner.
The lawsuit challenging the $85 billion deal was filed in a federal court in Washington D. C. on Monday.
In its suit, the DOJ argues that the deal violates antitrust law because AT&T would “use its control of Time Warner’s popular programming as a weapon to harm competition.”
It also alleges that the merger would “result in fewer innovative offerings and higher bills for American families.”
At a news conference on Tuesday, CEO Randall Stephenson said the company is not going to cave in to the demands of the government.
“We believe quite strongly that any divestiture of AT&T assets or Time Warner assets is not required by the law. We have not intention of backing down from the government’s lawsuit. We are in this to win ask under reasonable compromise that doesn’t violate our principles. We expect to do just that,” he said.
Stephenson said the DOJ has gone too far in its quest to stop this deal from moving forward. “The lawsuit stretches the very reach of antitrust law beyond the breaking point. All in an effort to stop this combination,” he said.
AT&T said it plans to fight the lawsuit in court. Two weeks ago, Stephen said that if the DOJ filed a lawsuit the company would request an expedited hearing.
If the company wins, the merger will be allowed to move forward.
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