Van Hollen Calls for DOJ Investigation into White House Involvement in AT&T, Time Warner Merger Review
Today, U.S. Senator Chris Van Hollen (D-Md.) sent a letter to the Department of Justice (DOJ) requesting an investigation into the White House’s involvement in the Department’s review of the AT&T, Time Warner merger. Senator Van Hollen’s letter follows reports that President Trump ordered White House Economic Council Gary Cohn to interfere with the DOJ’s review of the proposed merger.
In his letter, Senator Van Hollen writes, “I request that you open an investigation into whether White House aides and officials have improperly tried to influence DOJ regulators in order to meet the objectives of President Trump. The President of the United States should not use his office to direct the DOJ to punish those who he perceives to be his adversaries or to reward his friends. This investigation and subsequent report should be made public to the American people to reassure them of the executive branch’s integrity and your agency’s independence.”
He continues, asking that DOJ provide answers to the following questions:
1. Did President Trump or any White House officials make formal or informal inquiries encouraging the Department of Justice to oppose the AT&T and Time Warner merger?
2. Did President Trump or White House officials make formal or informal inquiries encouraging the Department of Justice to approve or expedite the Disney/FOX merger?
3. Have President Trump or White House officials made formal or informal inquiries regarding other mergers?
4. If yes to any of the above, please describe the contents of these conversations.
The Senator closed the letter stating, “While Republicans deprived Americans the opportunity to learn more about this merger, it is alarming to learn that President Trump has also personally advocated for outcomes that financially benefit the media outlet that he clearly believes is most favorable to him. The regulators at DOJ need to focus on how these mergers benefit the consumer, not how they potentially benefit the President’s perceived allies or adversaries.”
A copy of the letter is available here and the text is available below:
Dear Attorney General Barr,
I write to you today concerning recent reports that President Trump exerted undue influence on the Department of Justice (DOJ) and regulators to make decisions to benefit those he considers to be allies and disadvantage those he views as “enemies.”
The New Yorker reports that President Trump ordered the Director of the White House Economic Council, Gary Cohn, to direct DOJ attorneys to block the proposed merger between AT&T and Time Warner, and ultimately included Chief of Staff John Kelly in that request as well. Although DOJ attorneys have denied that they were unduly influenced by the White House to reach outcomes favored by the President, this reporting raises new questions.
I request that you open an investigation into whether White House aides and officials have improperly tried to influence DOJ regulators in order to meet the objectives of President Trump. The President of the United States should not use his office to direct the DOJ to punish those who he perceives to be his adversaries or to reward his friends. This investigation and subsequent report should be made public to the American people to reassure them of the executive branch’s integrity and your agency’s independence.
Investigators should ascertain the following:
1. Did President Trump or any White House officials make formal or informal inquiries encouraging the Department of Justice to oppose the AT&T and Time Warner merger?
2. Did President Trump or White House officials make formal or informal inquiries encouraging the Department of Justice to approve or expedite the Disney/FOX merger?
3. Have President Trump or White House officials made formal or informal inquiries regarding other mergers?
4. If yes to any of the above, please describe the contents of these conversations.
Experts originally estimated that the Disney/FOX merger that included the sale of 21st Century FOX’s entertainment, cable entertainment, and direct broadcast satellite divisions would take an estimated eighteen months to be completed due to the regulatory review process conducted by DOJ. The $71.3 billion approval only took six months, an almost unheard of expedited approval process for a horizontal merger. By contrast, the vertical AT&T and Time Warner merger took eighteen months to complete because DOJ challenged the merger’s approval twice. President Trump decried the AT&T and Time Warner merger as “not good for the country” but applauded the Disney/FOX merger as one that would “be a great thing for jobs.”
To be clear, I am not advocating for any particular company or outcome. Many, including myself, are concerned that media consolidation and other mega-mergers can harm consumers by reducing competition, and every merger must be strictly scrutinized on the merits. My Democratic colleagues rightfully urged Congress to hold hearings on the Disney/FOX merger but unfortunately, none were scheduled. While Republicans deprived Americans the opportunity to learn more about this merger, it is alarming to learn that President Trump has also personally advocated for outcomes that financially benefit the media outlet that he clearly believes is most favorable to him. The regulators at DOJ need to focus on how these mergers benefit the consumer, not how they potentially benefit the President’s perceived allies or adversaries.
I understand that as a former Time Warner board member you have recused yourself from all matters relating to the AT&T and Time Warner merger. I appreciate that decision and I request that you direct this matter to the appropriate DOJ attorney. I await your prompt response to this matter.
Sincerely,
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