AT&T is in preliminary discussions with the Department of Justice (DOJ) about potential conditions to win approval for its pending merger with Time Warner, according to Bloomberg.
The talks indicate that the DOJ’s antitrust division is getting closer to finishing its review of the $85 billion deal, which experts and observers expect the DOJ to clear.
{mosads}Competitors and lawmakers have pressured the DOJ, however, and warned of potential anti-competitive practices that AT&T could engage in after the merger is finalized. Those concerns include the possibility that AT&T would favor Time Warner content such as CNN and HBO on its TV services.
But good faith conditions set up with the DOJ could help AT&T allay these worries, Bloomberg noted, pointing to AT&T CEO Randall Stephenson’s comments to CNBC last October that he would be open to such considerations.
When questioned by Democrats like Sen. Al Franken (Minn.) during a hearing in December, Stephenson and Time Warner CEO Jeff Bewkes argued that the merger would benefit consumers because the companies could capitalize from the “efficiencies” of being one entity and pass on cost savings.
President Trump has said he would try to block the merger, citing concerns about too much media consolidation. But Attorney General Jeff Sessions has said he would not take political considerations into account when reviewing mergers.
The DOJ declined to comment on talks with AT&T and the telecommunications behemoth did not immediately respond to a request for comment.