Antitrust Law Daily Wrap Up, ANTITRUST NEWS: Senators ask FCC, Antitrust Division to closely evaluate impact of AT&T-DirecTV deal, (May 27, 2014)
Organizations Mentioned:AT&T | AT&T/DIRECTV
By Paul Kirby, TRDaily
Sens. Amy Klobuchar (D., Minn.) and Mike Lee (R., Utah), the respective chairman and ranking member of the Senate antitrust, competition policy, and consumer rights subcommittee, asked the FCC and the Department of Justice Antitrust Division on Friday to closely evaluate what impact a AT&T, Inc.-DirecTV deal would have on consumers.
“This proposed transaction would result in additional consolidation in the market for pay television and may impact consumer welfare in that market and other markets in which the companies operate,” the senators said in a letter. “As always, the key to analyzing any merger should be the effect it will have on consumers, including price, choice, quality of service, and innovation.”
“AT&T and DirecTV state that their merger will create a ‘competitive alternative to cable for consumers wanting a better bundle of top-quality broadband, video and mobile services, as well as a better customer experience and enhanced innovation.’ The companies further state that increased scale will allow the merged entity to realize cost synergies. As you review this transaction, we believe it is important to validate and weigh these efficiencies against the potential competitive harms that could result from the transaction,” the senators said in their letter to FCC Chairman Tom Wheeler and Assistant Attorney General in charge of the Antitrust Division William Baer.
They said they “plan to hold a Subcommittee hearing this summer to examine the important issues raised by this proposed merger and will follow up with you based on the evidence and testimony reviewed during that process.”
News: Antitrust