Contact Us

Department of Justice Files Antitrust Lawsuit on AT&T Acquisition of T-Mobile, Could Have Severe Negative Effect on T-Mobile

James M. Cole - Chip Somodevilla, Getty Images

The U.S. Department of Justice has filed an antitrust lawsuit to block AT&T’s acquisition of T-Mobile.

The DoJ’s suit claims that the transaction would reduce competition in mobile wireless telecommunications services, causing higher prices, a drop in service quality, and fewer innovative products for consumers.

AT&T is attempting to acquire T-Mobile from Deutsche Telekom AG in a $39 billion deal.

Deputy Attorney General James M. Cole discussed the antitrust suit, saying “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 benefit of that competition.”

In the press release sent out by the Department of Justice, they say that T-Mobile competes head to head nationwide, and the acquisition would eliminate a company that has been a disruptive force to AT&T through low pricing and innovation.

Industry Analyst Rick Franklin with Edward Jones & Co. weighed in on the suit, saying that this may not be the end for the acquisition. “There are ways that they might be able to negotiate with the government, divestitures over certain properties, to enable it to still go through…This is the namesake of a company that went through one of the largest corporate divestitures in history, if not the largest in history to satisfy antitrust concerns in the past,” Franklin said.

Michael Buckner, Getty Images for T-Mobile

The Department of Justice says that they are seeking to block the deal “in order to maintain a vibrant and competitive marketplace that allows everyone to benefit from lower prices and better quality and innovative products.”

According to the Associated Press, T-Mobile has been struggling to keep up with other carriers, and Deutsche Telekom AG has decided not to invest further in the company. If the acquisition does fail however, AT&T has promised T-Mobile $3 billion, and other rights and agreements that could be worth billions as well.

More From KFYO

Best of the Web

Leave a Comment

It appears that you already have an account created within our VIP network of sites on . To keep your points and personal information safe, we need to verify that it's really you. To activate your account, please confirm your password. When you have confirmed your password, you will be able to log in through Facebook on both sites.

Forgot your password?

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

It appears that you already have an account on this site associated with . To connect your existing account with your Facebook account, just click on the account activation button below. You will maintain your existing profile and VIP program points. After you do this, you will be able to always log in to http://kfyo.com using your Facebook account.

*Please note that your points, prizes and activities will not be shared between programs within our VIP network.

Please fill out the information below to help us provide you a better experience.

Register on News/Talk 790 KFYO quickly by logging in with your Facebook account. It's just as secure, and no password to remember!

Not a Member? Sign Up Here.

Sign up for an account to comment, share your thoughts, and earn points to get great prizes.

Register on News/Talk 790 KFYO quickly by logging in with your Facebook account. It's just as secure, and no password to remember!