US government appeals AT&T and Time Warner merger approval

The U.S. Department of Justice has appealed a recent federal judge ruling approving the $85.4 billion mega merger between telecom giant AT&T and media company Time Warner.

CNBC took notice to the DC Circuit Court of Appeals on Thursday filed appeal on. This document is only a short statement in which the Ministry of Justice indicates that it will appeal; there is as yet no further substantive substantiation of why an appeal is being lodged and on what points.

It was already known that the US government is not happy with the acquisition of Time Warner by AT&T. The ministry previously tried to block the takeover through the courts, but came to a screeching halt a month ago. According to that federal judge, the Justice Department has not demonstrated convincingly that the acquisition of Time Warner by AT&T violates antitrust laws and that it would lead to a substantial reduction in competition.

The government wanted to block the takeover and wanted certain conditions to be imposed, such as requiring Time Warner to sell its television business, Turner, or for AT&T to sell satellite TV provider DirecTV. The Ministry of Justice mainly sees competition concerns with the combination of these two components.

AT&T has already responded to the Justice Department’s appeal. According to the telecom company, the federal judge’s ruling, which approved the acquisition, was very thorough, factual and well-founded. AT&T acknowledges that the ministry has the right to appeal, but is surprised that the government is doing so, given the earlier ruling.