Justice Dept, Sprint Launch Antitrust Suit Against AT&T

By:  Daniel Sayani
10/11/2011
       
Justice Dept, Sprint Launch Antitrust Suit Against AT&T

In response to AT&T’s proposed acquisition of mobile carrier T-Mobile for $39 billion, the Department of Justice (DOJ) announced it would be bringing suit against AT&T on the grounds the wireless giant is in violation of federal antitrust laws.

In addition to Attorney General Eric Holder bringing suit against the nation’s largest mobile services provider, seven states announced Friday they would be joining efforts to legally halt the merger. Attorneys General from California, Illinois, Massachusetts, New York, Ohio, Pennsylvania, and Washington have signed onto the effort to stop the deal that would merge two of the four largest national cellphone carriers.

The Justice Department issued an amended complaint against AT&T last week, as well as T-Mobile and its parent company, Deutsche-Telekom, arguing that the merger of the nation’s second- and fourth-largest wireless carriers would violate antitrust law and “substantially lessen competition.” The DOJ claims that the combination would reduce wireless communication competition in the United States, driving prices higher, making service worse, and offering fewer products for U.S. consumers.

The department said in the statement,

In response to AT&T’s proposed acquisition of mobile carrier T-Mobile for $39 billion, the Department of Justice (DOJ) announced it would be bringing suit against AT&T on the grounds the wireless giant is in violation of federal antitrust laws.

In addition to Attorney General Eric Holder bringing suit against the nation’s largest mobile services provider, seven states announced Friday they would be joining efforts to legally halt the merger. Attorneys General from California, Illinois, Massachusetts, New York, Ohio, Pennsylvania, and Washington have signed onto the effort to stop the deal that would merge two of the four largest national cellphone carriers.

The Justice Department issued an amended complaint against AT&T last week, as well as T-Mobile and its parent company, Deutsche-Telekom, arguing that the merger of the nation’s second- and fourth-largest wireless carriers would violate antitrust law and “substantially lessen competition.” The DOJ claims that the combination would reduce wireless communication competition in the United States, driving prices higher, making service worse, and offering fewer products for U.S. consumers.

The department said in the statement,

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Photo: AP Images

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