Summary of “AT&T promised lower prices after Time Warner merger-it’s raising them instead”

AT&T is raising the base price of its DirecTV Now streaming service by $5 per month, despite promising in court that its acquisition of Time Warner Inc. would lower TV prices.
Just two months ago, AT&T said in a court filing that buying Time Warner would allow it to lower TV prices.
The US Department of Justice tried to stop the merger, arguing that it would raise prices for consumers, but a federal judge sided with AT&T. The merger was completed on June 15.
AT&T scoffed at the Justice Department’s argument that the merger would raise prices.
The telecomm giant wrote in its post-trial brief that the merger will “Enabl[e] AT&T and Time Warner to reduce consumer prices.”
“[C]ertain merger efficiencies will begin exerting downward pressure on consumer prices almost immediately ” AT&T wrote.
Owning Time Warner gives AT&T more control over how much it pays for the programming it offers to DirecTV customers, because it no longer has to negotiate with a third party for Time Warner content.
When contacted by Ars, AT&T didn’t explain why the Time Warner merger didn’t prevent the $5 price increase.

The orginal article.