U.S. WILL FIGHT PAY-TV MERGER BY FILM STUDIOS
The Department of Justice announced yesterday that it would file a civil antitrust suit to block a proposed merger of the second- and third-largest pay-television networks, Showtime and the Movie Channel. The department said the combination of the two pay-television channels would stifle competition in the sale of their programs to cable systems. It also said that having three competing film studios in business together could hamper competition in their sale of films to pay-television channels. The proposed merger would be a joint venture of three film studios - Paramount Pictures; Warner Brothers, a division of Warner Communications Inc., and MCA Inc. - and two companies involved in supplying entertainment by the use of satellites, the American Express Company and Viacom International.