Stories

Brazil antitrust agency challenges AT&T-Time Warner deal

AP

Brazil's antitrust authority said the merger of AT&T and Time Warner should not be allowed to go through unless the companies agree to changes, such divesting certain assets, to prevent the combined company from hurting competition.

Why it matters: Brazil is one of the remaining countries (along with the U.S.) that needs to sign off on the $85 billion deal, which has gotten regulatory authority from 16 countries. While it's hard to know how the recommendation will impact the U.S. review, it will likely be noticed by the Department of Justice since critics of the deal have drawn parallels in the U.S. market.

"I think this will harden any existing concerns DOJ has about the deal," said Gene Kimmelman, former DOJ official who is now CEO of Public Knowledge, an opponent of the merger.