US could block AT&T's takeover of Time Warner

US telecoms giant AT&T is set for a court battle with the Department of Justice over its $85 billion (£64 billion) bid for Time Warner, owner of CNN and HBO.

On Monday night the DoJ said it would sue to block the deal, warning it would harm competition in the media sector and push up prices for consumers.

AT&T immediately said it would fight the DoJ to buy HBO owner Time Warner.

The government alleges the deal “would result in fewer innovative offerings and higher bills for American families”. Earlier speculation had it that AT&T would have to sell CNN to land its prize. AT&T has described that as a “non-starter”.

CNN has been criticised by President Donald Trump for “fake news”. He has said he is opposed to the deal.

Legal experts say the DoJ move is unusual, since AT&T is not a direct competitor of Time Warner, owning infrastructure rather than content.