Government blocks AT&T-T-Mobile merger

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Government blocks AT&T-T-Mobile merger

Justice Department blocking according to Anon source at AP: UPDATE: Justice dept files

By Randall Gross

Technology • August 2011 • Views: 1,340

hosted.ap.org

The Justice Department is blocking AT&T’s $39 billion deal to buy T-Mobile USA, saying the acquisition of the No. 4 wireless carrier in the country by No. 2 AT&T would reduce competition and raise prices. That’s according to a person familiar with the matter.

The person spoke on condition of anonymity because the agreement wasn’t announced yet.

The deal has faced tough opposition from consumer groups and No. 3 carrier Sprint since it was announced in March.

AT&T could challenge the Justice Department’s action in court.

More at Bloomberg, Antitrust complaint filed

More at the Justice Department

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4 comments

jc717 Wed, Aug 31, 2011 10:58:28am

Good. They should break up AT&T an Verizon into a bunch of baby cells while they're at it.

We more way more for cell service in the US than anywhere else in the civilized world.

Political Atheist Wed, Aug 31, 2011 1:23:17pm

At&T tried to push by offering to repatriate 5000 off shore call center jobs if the deal goes through. Looks like another bogus AT&T "bundle pricing" scam.

Ma Bell got broken up for good cause. Now At&T bought most of the pieces plus the cell services. It's a monstrosity. At my work we had competing AT&T divisions giving us different quotes on our lines and internet. When we went with the better deal AT&T Business division tried to disallow it. Successfully as it turned out, we got no promised savings.

bratwurst Wed, Aug 31, 2011 2:37:58pm

Nice to see a rare case of the US government not bending over for corporations.

Dark_Falcon Wed, Aug 31, 2011 9:10:27pm

re: #3 bratwurst

Nice to see a rare case of the US government not bending over for corporations.

For once I agree with a merger being blocked. Having worked in the cell phone industry, I can say that allowing AT&T and T-Mobile to merger would effectively reduce the number of national cell phone companies from 4 to 2, since there is no way Sprint could compete successfully with the giants AT&T and Verizon would be. This merger would be bad for everyone except those who hold stock in AT&T or Deutch Telekomm (T-Mobile's corporate parent). Thus I support the DOJ blocking this merger.

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