Justice Department filing suit to block merger

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Thursday, Oct. 31, 2002 | 9:55 a.m.

WASHINGTON -- The Justice Department will file a lawsuit today to block a merger between EchoStar Communications Corp. and Hughes Electronics Corp. that would have created the nation's largest pay-television service, according to a congressional office notified of the impending action.

The department's opposition comes despite concessions EchoStar offered last week to bolster a rival company and avoid concerns about a potential monopoly.

The Federal Communication Commission had already voted unanimously to oppose the $22.6 billion merger, saying it would create a monopoly that would have "staggering" adverse effects for consumers. The Justice Department's review was focusing on potential antitrust implications.

Echostar, based in Littleton, Colo., runs Dish Network, while El Segundo, Calif.-based Hughes operates DirecTV. Together they serve about 18 million subscribers and would be the largest pay-television service.