The US Department of Justice has finally weighed in on the AT&T, T-Mobile merger. They are not happy and words such as antitrust are being thrown around.
A report out of Bloomberg today states that the DOJ has filed to block the AT&T acquisition of T-Mobile, stating that the deal would “substantially lessen competition†and “AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the marketâ€.
I was beginning to wonder if the DOJ was ever going to move on this. This is great news if you ask me. We do not need our wireless system to be monopolized any more so than it already is.
Don’t forget that T-Mobile and its parent, Deutsche Telekom, both stand to make a substantial gain in funds and spectrum, if the merger is blocked.
I will update this post as more news becomes available.
Via Bloomberg
[UPDATE] Looks like it didn’t take to long for AT&T to get a statement pushed out about this latest news. They don’t seem to pleased with the whole thing at all –
“We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DOJ that this action was being contemplated.
We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed. The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court.
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 LTE mobile broadband to another 55 million Americans, or 97% of the population;
· Result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most.
We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court.”
