Question

ATT&T and Time Warner (Spectrum) has been viewed a great deal since it may have great benefits for customers. But the critics of such merger claim that this deal will hurt customers. Should the Government approve this merger? Provide your arguments or against the deal.

Answer 1

Cons

Potential risk of exclusivity or self-dealing

It is quiet possible that AT&T would use Time Warner's programming as a bargaining chip.DirecTV, for instance, might favor Time Warner content, crowding out or refusing to carry alternative and independent programming that viewers might prefer.AT & T may play with prices in a way to drive customers to its platforms There is possibility that it may exclude Time Warner content from data caps on its broadband networks.

Privacy

Another issue is related to privacy of consumer data. It is important to safeguard the interests of consumers as the data will be exposed to more screens and platforms.

Consolidation and risk of higher prices

From past we can learn that megamergers have acted against public interests.Creation of Monopoly have resulted in harming innovation, creativity and resulted in high prices for consumers.

Seeing the above negative affects Government should not approve the merger or else take a proper step by weighing the pros and cons of merger.