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AT&T Backs Off Political Argument in Antitrust Case

But the trial itself, starting later this month, is shaping up to be a fight focused on classic issues in antitrust law. In court filings on Friday, the Justice Department and AT&T laid out the arguments that they plan to make in the trial. Just the opposite: It is about making Time Warner and AT&T more competitive during a revolutionary transformation that is occurring in the video programming marketplace.” The trial, one of the biggest antitrust showdowns in decades, will begin March 19 in the United States District Court for the District of Columbia. AT&T originally argued to the court that the Justice Department’s suit was a case of “selective enforcement” — that the government was essentially blocking the deal because the president was against it. The company would have a leading position to negotiate licensing deals with rival telecom and media firms. Rivals such as Comcast, Dish and Sony are expected to be called as witnesses to reveal details about their business dealings with AT&T and Time Warner in the past. The Justice Department is expected to argue that a combined AT&T and Time Warner would have the incentive to make it harder for competing media companies to distribute their programming through AT&T, and for Time Warner brands to limit their distribution outside of AT&T. AT&T said it would challenge the government’s arguments that the merger would increase consumer prices and hamper competition by raising licensing fees for Time Warner content. The company said it would argue that the merger of two companies that do not compete would be a stronger competitor in a market that had many new companies from Silicon Valley, like Facebook and Netflix. “As will be demonstrated at trial, the new video revolution is defined by the spectacular rise of Netflix, Amazon, Google, and other vertically integrated, direct-to-consumer technology companies as market leaders in both video programming and video distribution,” AT&T said in its brief.