The Justice Department will appeal the AT&T-Time Warner merger approval, according to a court document filed Thursday.
Shares of AT&T slipped more than 1 percent in after-hours trading Thursday.
In June, a federal judge ruled that the $85.4 billion deal was legal and imposed no conditions on the merger.
At the time, the Justice Department expressed its disappointment with the ruling. The government argued that the deal would make the pay-TV market “less competitive and less innovative.”
But in his nearly 200-page opinion, U.S. District Court Judge Richard Leon determined that the government failed to meet its burden to establish that the deal would significantly decrease competition.
Since announcing its bid in October 2016, AT&T has maintained that buying Time Warner would help the company compete against tech companies like Amazon and Netflix. AT&T, the No. 2 wireless carrier in the U.S., said the deal would help the company attract customers by bundling entertainment with mobile service.
The Justice Department decided against filing to delay the closing of the deal, which was completed within days of the favorable ruling.
This story is developing. Please check back for updates.
Source: Tech CNBC
Justice Department appeals Time Warner-AT&T merger approval