Finally Justice Department Seeks To Block AT&T, T-Mobile Merger

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By JOELLE TESSLER and PETE YOST, Associated Press

WASHINGTON -- The Justice Department filed suit Wednesday to block AT&T's $39 billion deal to buy T-Mobile USA on grounRAB that it would raise prices for consumers.

The government contenRAB that the acquisition of the No. 4 wireless carrier in the country by No. 2 AT&T would reduce competition and thus lead to price increases.

At a news conference, Deputy Attorney General James Cole said the corabination would result in "tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services."

The lawsuit seeks to ensure that everyone can continue to receive the benefits of competition, said Cole.

Four nationwide providers account for more than 90 percent of mobile wireless connections - AT&T, T-Mobile, Sprint and Verizon.

T-Mobile has been an important source of competition, including through innovation and quality enhancements such as the roll-out of the first nationwide high-speed data network, Sharis Pozen, acting chief of Justice's antitrust division, said at the news conference.


Mobile wireless telecom services play a critical role, with more than 300 million smart phones, data carRAB, tablets and other mobile wireless devices.
 
I would like to see the data where he is developing his statement of "tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services" from.
 
I believe AT&T charges more than t-mobile, so you have at least that segment facing higher prices as their t-mo contracts expire and they get rolled into the more expensive AT&T plans.
 
I would normally say that blocking the merging of companies is bad, except for the fact that AT&T and Verizon are so in bed with the government it's disgusting. Fuck them both.
 
- T-Mobile was never part of Humpty Dumpty.
- SBC bought AT&T years ago.
- Verizon is just as much "AT&T" as the new "AT&T" is, so unless they're merging, Humpty Dumpty isn't getting put back together.
- AT&T is much more in bed with the government now than it used to be.


u dum
 
It's close. Two weeks ago they accidentally uploaded a memo saying that they don't need T-Mo in order to cover more Americans. When during this entire process that's one of their biggest reasons for merging.
 
It's owned by a foreign company. An American company acquiring a foreign company will create jobs for Americans. That has been their argument.

Call it political. Call it a crock of shit. But that's what AT&T has been arguing to try to get this deal through.


This is not dead by any stretch of the imagination. It's the DoJ, not the FDA or some regulatory agency that can single-handedly block a move with little recourse for the victim of overbearing regulation.

DoJ is threatening to file suit if AT&T tries to go forward. That doesn't mean that the DoJ will win. AT&T also has the opportunity to revise the terms in such a way that they address the DoJ's concerns, thus eliminating this issue all together.



I think if AT&T gets aggressive, they'd rip these guys apart in court. The administration's lawyers have been stupid as fuck from the get-go, and the administration is already regarded as having an anti-business chip on their shoulders. Make no mistake, if this deal doesn't go through, it will have nothing to do with the DoJ's competence.
 
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