AT&T Raises Prices After Merger-Lied to Federal Judge
What AT&T told a judge
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.”
Then the real world.
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.
AT&T confirmed the price increase to Ars and said it began informing customers of the increase this past weekend. “The $5 increase will go into effect July 26 for new customers and varies for existing customers based on their billing date,” an AT&T spokesperson said.