AT&T Merger With T-Mobile: Department of Justice Sues for Anti-Trust Violation
The Department of Justice has filed a lawsuit in order to halt AT&T's acquisition of T-Mobile USA.
In the suit, filed Wednesday with the U.S. District Court, the DOJ argues that the proposed $39 million merger would violate anti-trust laws and could also hamper competition between wireless carriers.
“AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market,” the filing states.
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The suit details that with the acquisition could come an increase in prices, a decrease in quality services as well as less product development which has become common for many wireless networks, including AT&T and T-Mobile.
"Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation's wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition," said Deputy Attorney General James M. Cole in a statement announcing the suit.
AT&T said in an emailed statement to CNET that it is surprised at the Department of Justice's motion to sue, noting that the company has been in talks with the department and had no indication of its intentions.
AT&T insists that the merger would benefit both companies as well as the nation's struggling economy.
"At the end of the day, we believe facts will guide any final decision and the facts are clear. This merger will help solve our nation's spectrum exhaust situation and improve wireless service for millions; allow AT&T to expand 4G mobile broadband to another 55 million Americans, or 97 percent of the population; [and] result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most," Wayne Watts, AT&T senior executive vice president and general counsel, said in the email statement.
