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The Decision Of Department Of Justice

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After secondary researching on antitrust law, the guide line showed how those policy work and continue to be focused more on AT&T and Timer Warner merging situation as the judge of Department of Justice does not making any decision about this merging proposal. The purpose of merging is to reduce the cost as low as possible at efficiency scale level. This reason also to promote consumers and producer’s social welfare. However, some mergers films could change their market characteristic after merging (The FTC). The FTC added that vertical mergers had a difficult experience to keep the market with competition. After merging, the result could be a negative result that will affect other competitors or it calls “reduce competition or eliminate competitors.” When merger films’ price is lower than another film. If other competitors could not compete with mergers film, then those films will exit the market. Later new films might have a difficult time to enter because of the price is low and their cost will be too high. The higher cost could be a result from restriction of “patent rights, license,” and other “regulation.” For this situation, FTC will review a new policy. “The Case for the AT&T-Time Warner Deal” point out Mr. Stephenson (AT&T chief executive officer) that he wanted to ignore the basic structure of changing the market, but focus more on Mr. Bewkes (CEO of Time Warner) mentioned about “vertical combination” of AT& T and Timer Warner. Mr. Bewkers continued that this

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