U.S. DoJ Says Ruling Approving AT&T-Time Warner Merger Ignored ‘Fundamental Principles of Economics and Common Sense’ – Info Mac

In the filing, the DoJ says the district court approved the merger after “erroneously ignoring fundamental principles of economics and common sense” and that it used a “deeply flawed assessment of the government’s evidence” to reach its decision.

The district court’s contrary conclusion rests on two fundamental analytical errors: it discarded the economics of bargaining, and it failed to apply the foundational principle of corporate-wide profit maximization. These errors colored the court’s view of the facts, leading to a decision that is clearly erroneous in light of the evidence presented at trial.

The Department of Justice is asking the appeals court to vacate the district court’s ruling and remand the matter for further proceedings.

While the merger is finished, the Department of Justice remains able to appeal the judge’s ruling and first announced plans to do so back in mid-July.