August 31, 2011

DoJ Suit Against AT&T Merger May Have an Advantage

Jerry Ellig

Former Senior Research Fellow

Regardless of what one thinks about the merger, it’s nice to see that we’ll finally have a knock-down, drag-out fight based on whether a big telecommunications merger harms consumers and competition.  That’s the antitrust standard the Department of Justice has to satisfy to prevent the merger. 

This case will be a refreshing change from the FCC’s public interest standard, which allows the commission to object on grounds other than consumer welfare and demand all manner of concessions that have nothing to do with remedying anticompetitive effects of a deal.

If AT&T wins in court, the FCC should approve the merger promptly without additional conditions. 

For more, check out The Technology Liberation Front.