Nov 17, 2017

Antitrust chief's comments sound ominous for AT&T-Time Warner

Assistant Attorney General, Antitrust Division nominee Makan Delrahim testifies before the Senate Judiciary Committee's hearing on his nomination in May 2017. Cliff Owens / AP

The Justice Department's top antitrust cop laid out some clues about his merger philosophy — and it doesn't bode well for AT&T's proposed $85 billion takeover of Time Warner.Both companies have pushed for "behavioral remedies" — in other words, conditions to prevent specific anticompetitive behaviors by merging companies — to address antitrust concerns.Don't hold your breath: In a speech yesterday DOJ antitrust chief Makan Delrahim said such fixes are more like temporary band-aids and hard to enforce. He was critical of specific deals approved with behavioral conditions, like Comcast/NBCU, Google/ITA and LiveNation/Ticketmaster."I believe the [DOJ] should fairly review offers to settle but also be skeptical of those consisting of behavioral remedies or divestitures that only partially remedy the likely harm," he said.Instead: He made it clear he prefers "structural" solutions, which would usually involve selling off major assets. "Behavioral remedies often require companies to make daily decisions contrary to their profit-maximizing incentives, and they demand ongoing monitoring and enforcement to do that effectively," he said. "It is the wolf of regulation dressed in the sheep's clothing of a behavioral decree."Between the lines: In this case, a structural fix could involve divestitures of Turner (the owner of CNN) or DirectTV, which has been floated in press reports. Both those assets are key to AT&T's plan for a content and delivery powerhouse.

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World coronavirus updates

Data: The Center for Systems Science and Engineering at Johns Hopkins; Map: Axios Visuals

Countries where novel coronavirus cases are falling may be hit with a "second peak" if they relax restrictions too soon, World Health Organization emergencies chief Mike Ryan warned during a briefing Monday. "We're still very much in a phase where the disease is actually on the way up," he added.

By the numbers: Brazil on Monday recorded for the first time more deaths from the novel coronavirus in a single day than the United States, Reuters notes. Brazil reported 807 deaths from COVID-19 in the past 24 hours, compared to 620 in the U.S. for the same period.

Palantir CEO reflects on work with ICE

Palantir CEO Alex Karp told "Axios on HBO" that there have "absolutely" been moments he wished the company hadn't taken a contract with Immigration and Customs Enforcement (ICE).

  • "Did I suffer? ... I've had some of my favorite employees leave," Karp told "Axios on HBO."

Michigan governor won't apologize for coronavirus lockdown

Michigan Gov. Gretchen Whitmer defended the strictness of her state's coronavirus lockdown in an interview with "Axios on HBO," saying it was necessary — despite the protests that have drawn national attention — because of how quickly the state's cases were rising.

The big picture: Whitmer, who has been a frequent target of President Trump, insisted that she had to act in the face of a lack of federal leadership — and that thousands more people in her state would have died without the lockdown.