Antitrust partner Fiona Schaeffer recently commented in an article, “Trump DOJ Appealing Judge’s OK of AT&T-Time Warner Merger,” published by the Associated Press on July 12. The article discusses the Justice Department’s decision to challenge a ruling by US District Judge Richard Leon that allows AT&T’s $81 billion takeover of Time Warner to move forward following an antitrust trial. The judge rejected the government’s assertion that the megamerger would have adverse effects on competitors as well as consumers. The article outlines the standing legal doctrine which favors mergers among companies that don’t directly compete known as vertical mergers, as well as the potential implications of this case.
According to Ms. Schaeffer, Judge Leon “’tried his best to make it appeal-proof’ … Still, the Justice Department apparently believes it has an adequate legal basis to show an error in Leon’s ruling.” She commented that “I think the Department of Justice believes this is a really important case that will influence the legal standard for analyzing vertical mergers in the 21st century ... They’ve put a lot of resources into challenging this vertical merger in a full trial on the merits. They have already done the heavy lifting on the case, and appealing (Leon’s) opinion will be an incremental effort with a significant potential upside.”
The article was picked up by The New York Times, ABC News, and The Washington Post among other publications.
