T AT&T Inc

U.S. lawmakers on Wednesday expressed wide-ranging concerns about AT&T Inc.'s blockbuster $85 billion deal to buy Time Warner Inc., a reaction that suggests the deal could come under renewed political pressure.

Sen. Mike Lee (R., Utah), in a Senate antitrust subcommittee hearing on the proposed merger, said the deal could lead to "potential anticompetitive favoritism."

The merger's potential impact could include price and access problems for competitors seeking Time Warner's prized content, such as HBO, Mr. Lee said.

He also worried that the deal could create a new problem for the industry and consumers in the form of AT&T's plans to exclude its online video offerings from its wireless data caps. Critics worry that could turn AT&T into a powerful gatekeeper for consumers' content, Sen. Lee noted.

Sen. Charles Grassley (R., Iowa) also noted questions about the merged company's ability to employ "'bullying' tactics to dictate rates and terms to other networks." Mr. Grassley cited "concern that this acquisition will concentrate too much power into one conglomerate," as well as "concern about the merger's implications for a free and diverse press."

Antitrust enforcers in the Trump administration will ultimately decide whether to approve the deal or block it as anticompetitive, so the senators will have little or no say in the outcome. However, members of Congress can both reflect and contribute to the public mood regarding the merger of such large, high-impact businesses.

Sen. Amy Klobuchar of Minnesota, the committee's top Democrat, also expressed concerns. But the worries of the Republican lawmakers, who are often apt to take a pro-business approach, was especially notable, and may reflect in part a recent surge in populist sentiment in both parties.

Write to John D. McKinnon at john.mckinnon@wsj.com

(END) Dow Jones Newswires

December 07, 2016 11:05 ET (16:05 GMT)

AT&T (NYSE:T)
Historical Stock Chart
From Mar 2024 to Apr 2024

AT&T (NYSE:T)
Historical Stock Chart
From Apr 2023 to Apr 2024