US moves to block AT&T's takeover of Time Warner

The US Department of Justice has filed a lawsuit to block telecoms giant AT&T's acquisition of Time Warner, the owner of CNN and HBO.

The department said the merger would lessen competition and lead to higher consumer prices. AT&T vowed to fight the move, calling it a radical departure from US anti-trust practice.

AT&T chief executive Randall Stephenson (R) and President Donald Trump

US President Donald Trump objected to the deal during his campaign last year, fuelling the controversy. AT&T chief executive Randall Stephenson said on Tuesday that he thought the acquisition had been on a good path "until recently".


He referred to concerns about possible political influence as the "elephant in the room". President Trump is a vocal critic of CNN which is owned by Time Warner.

Mr Stephenson said: "There's been a lot of reporting and speculation whether this is all about CNN. And frankly I don't know. Nobody should be surprised the question keeps coming up."

In its lawsuit, the Department of Justice claimed that the deal would harm American consumers. Assistant attorney general Makan Delrahim of the Department of Justice's antitrust division, said: "It would mean higher monthly television bills and fewer of the new, emerging innovative options that consumers are beginning to enjoy."

The Department of Justice started reviewing the deal after it was announced last year, then valued at more than $85bn.

The decision to take legal action sets up a high-profile fight over US anti-trust law, which has rarely been tested in cases involving companies that do not directly compete.