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CONSUMER GROUPS TRY TO BLOCK AT&T BUY OF MEDIAONE

WASHINGTON-Three consumer groups have asked the Federal Communications Commission and the Department of Justice to block AT&T Corp.’s planned acquisition of MediaOne.

The Consumers Union, Consumer Federation of America and Media Access Project jointly filed a formal document at the two agencies saying the merger violates antitrust laws and market concentration limits mandated by Congress and administered by the FCC.

Specifically, the trio asked the FCC to vacate the voluntary stay of its “horizontal ownership” rules, which set an upper limit on how many subscribers any cable operator may reach.

“If this merger is not blocked, consumers will continue to see their cable rates soar and begin to face inflated prices for new high-speed Internet services,” said Gene Kimmelman, co-director of Consumer Union’s Washington office.

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