The U.S. Department of Justice has filed an anti-trust complaint and lawsuit with a Washington court regarding the proposed merger between wireless companies AT&T and T-Mobile. The filing is an attempt to block the merger, and the complaint states, “AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market.”
In other words, the merger would put AT&T one step closer to having a veritable monopoly on the wireless market. Although the filing doesn’t guarantee that the merger will be shot down, it does make the deal’s approval that much more difficult. Should the merger be rejected, AT&T will have to pay T-Mobile $3 billion. The DoJ also states, “Vibrant competition in wireless services is vital to innovation, investment, economic growth and job creation…competition fosters consumer benefits, including more choices, better service, and lower prices.”
AT&T’s Senior Executive Vice President and General Counsel, Wayne Watts, fired back, saying, “We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DoJ that this action was being contemplated.” He states that the company is still confident that the merger is in the best interest of consumers.
Sprint delivered further comment, stating that they think the DoJ’s decision to file marks a “decisive victory for consumers, competition, and our country.”
What do you think? Do you think AT&T should be allowed to merge with T-Mobile?
, department of justice
Categories: Deals and Finances