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The US Department of Justice (DOJ) is reportedly set to sue the company to block its $84.5 billion takeover of Time Warner, according to a report from Bloomberg News.

"The combination of AT&T [and] DirectTV's vast distribution infrastructure, and Time Warner's extremely popular television programming would be one of the largest mergers in American history", the official added.

The Justice Department official also warned that such a merger could allow AT&T to slow down advances in technology that would cut costs for consumers.

AT&T responded in a statement, calling the lawsuit "a radical and inexplicable departure from decades of antitrust precedent".

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Earlier this month, reports suggested that the DOJ was pushing AT&T to sell off either DirecTV or Turner Broadcasting, which houses CNN, in order to get the green light for the merger.

By testing the arrangement, the Justice Department is adopting a starkly unique strategy to antitrust issues than the Obama organization did.

AT&T's rocky quest to complete its acquisition of Time Warner just hit another speed bump. "This deal would give AT&T way too much power to undercut competitors and raise costs on TV viewers and internet users everywhere".

As NPR's David Folkenflik has reported, the DOJ's anticipated lawsuit had "triggered concerns" within CNN that the Trump administration was "taking action against a media outfit simply because it has angered the president with its coverage, raising First Amendment implications". "We are confident that the court will reject the government's claims and permit this merger under longstanding legal precedent".


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