Trump Government Unsupportive to Execute the Merger of Time Warner and AT&T.

There was news about the merger of two largest telecom companies in the country since the last year-end. This led to united or rather unified support of both the Democratic and Republican electoral candidates to stand against the strategic activity of both the companies. According to the sources, the Trump government is still in opposition to the merger of these two telecom giants which could give enormous power to single hand after the merger. This deal was considered to be valued at $85 billion which would involve the participation of major media companies and news channels and entertainment producers like TNT and HBO. If this merger is successful then the company would have access to vital information and the enormous power of data which could be destructive for the country and the customers. There were requests made by many diplomats and government officials to the Obama government to ensure that the deal doesn’t get through.

Recently, Justice Department antitrust chief Makan Delrahim, who is currently appointed, continued to block the potential merger which would jeopardize the consumer data privacy and protection against the trust. But this decision was not supported and agreed by many progressives who consider that this blockage would extend the potential growth of the telecom sector and supported AT&T. There were even allegations made by the progressives that the only agenda of the anti-trust divisions is to hamper the profitability and reputation of cable news network CNN channel which wasn’t supportive to the promotional campaign of Donald Trump and retaliated over it in the past. This would lead to a monopolistic situation in the telecom and news and entertainment industry which would backfire on the people and government of the US. The fear of two major forces joining hands in the telecom sector is completely understandable and needs very serious thoughts about the consequences if it actually happens.

The people of the US are also against the decision and should their support to the government over the blockage. But the primary problem with the blockage is the conflict of interest and the business model which will be formed after the merger between AT&T and Time Warner. This situation would provide a pricing advantage to AT&T over all the other small time competitors and enjoy the edge permanently. The company would have the liberty through which they could support and favour their own channels which are showcased on television, satellite and other possible networks. This blockage over the AT&T and Time Warner could work as an example for other media and telecom companies who are in the processing of executing such merger activities which would lead to concentration of powers in few individuals.

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