AT&T Inc (NYSE:T) closed at $36.21 losing 1.68% in yesterday’s trading session. It is now clear that not everybody is satisfied with the plan of AT&T to buy Time Warner Inc (NYSE:TWX). It was basing its argument of the fact that it would culminate into higher prices and at the same time slow down innovation in showing video online.
Major opposition is coming from seven consumer advocacy groups, which according to trusted sources wrote to Jeff, the Attorney General. They were asking the top official to do the right thing by blocking the renowned provider from purchasing Time Warner.
Consumer Federation of America, Common Cause, Public Knowledge, Consumers Union, Public Knowledge and some other groups have also been quite outspoken. They have aired their views in regards to the matter. Some of the top lawmakers have also criticized the move pointing to the fact that it would give AT&T the right to withhold Time Warner’s content from the rest of the outlets which won’t be a good thing. Asides from that, they have also spoken citing that it would hurt the effort to air movies and television shows on the internet.
They had been arguing that after purchasing Time Warner, the owners of AT&T and some other top providers would do some undesirable things. One of them would of course be exact the move to restrict sales of programming to online channels and cable.
It goes without saying that the move could in a large way hurt AT&T’s competitors and DirecTV’s rivals in providing video online. The concerns of the groups are endless. They are also against the move because it would create incentives for the renowned provider and as a result it would refrain from showcasing the independent programmers.
According to Yahoo, the deal poses immense danger to creators and consumers in the emerging and mature markets. They have called upon the government to do everything possible to block the deal.
While recently addressing the relevant authorities, one of the top members representing a dominant group said, “If you conclude, as appears to us from the available information, that conditions and piecemeal divestitures will not be sufficient, then we hope you will challenge the merger in its entirety.”