Why More Than Just the AT&T-Time Warner Deal Is on Trial

For decades, U.S. antitrust enforcers had worried mostly about mergers between direct competitors that might lead to higher consumer prices. The Justice Department sought to change that when it tried to block the $85 billion merger between AT&T Inc. and Time Warner Inc. The challenge raised the possibility that similar types of combinations could hit a roadblock, slowing down the pace of dealmaking. But a June 12 federal court ruling allowing the two companies to join could open the floodgates for more of these so-called vertical mergers. Imagine if Toyota Motor Corp. bought General Motors Co., or Apple Inc. acquired Samsung Electronics Co. These are the types of deals that have raised antitrust worries in the past.