US faces tough battle proving AT&T would use Time Warner to squeeze competition

WASHINGTON - Nearly 70 years ago, a landmark antitrust lawsuit changed how Hollywood did business. That case - United States vs. Paramount Pictures - banned major movie studios from owning cinema chains because that gave them too much power.

Now, the U.S. Department of Justice has sued AT&T in an attempt to block the telecommunications giant from acquiring Time Warner Inc., the owner of HBO, CNN, TNT, TBS, Cartoon Network and the Warner Bros. film and television studio. Once again, the government is frowning on a company controlling the creation and distribution of programming.

The lawsuit, filed Monday in U.S. District Court in Washington, could establish a