US appeals court backs AT&T-Time Warner mega-merger

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Judge says the industry is undergoing massive changes led by on-demand video services and innovative rival channels

The case had been closely watched as setting a benchmark for other big corporate mergers, especially in the media and communications sectorA US appeals court upheld a lower court ruling allowing the mega-merger of wireless and broadband giant AT&T with media-entertainment powerhouse Time Warner, February 26 2019.

The government brought the high-profile antitrust case, claiming the deal would give AT&T too much power in the market for pay television and home entertainment. The judge said the Justice Department"failed to meet its burden of proof" showing that pay TV costs would rise for consumers. AT&T and others had argued the government brought the case because of President Donald Trump's dislike of CNN — a frequent target of White House claims of"fake news" — but the courts declined to hear any evidence on political bias.

The lower court ruling said the government's claim that pay TV costs would rise from the tie-up was based on"speculative" logic and that its study from an expert witness was contradicted by other evidence from the government.

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