U.S. Justice Department says AT&T would make rivals pay more for content
WASHINGTON, Nov 20 (Reuters) - The Justice Department filed a lawsuit to stop AT&T, which owns DirecTV, from also buying Time Warner, at least partially because of concerns that AT&T would use Time Warner's films and movies to force rival pay TV companies to pay more for content.
It also said that AT&T would use Time Warner content to slow the industry’s transition to online video and other innovative distribution models.
In its lawsuit, the Justice Department cited AT&T and DirecTV documents saying that, if AT&T closes the Time Warner deal, the merged firm can "operate (its) pay-TV business as a 'cash cow' while slowly pivoting to new models." (Reporting by Diane Bartz; Editing by Bill Rigby)
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