US Justice Dept Files Antitrust Lawsuit Against AT&T / T-Mobile Merger

The United States Department of Justice today announced it has filed an antitrust lawsuit to block US telecommunications company AT&T from acquiring one of its top rivals, Deutsche Telekom’s T-Mobile. The Justice Department cited likely harm to innovation and consumers as reasons.

The merger of the two companies would combine two of the United States’ top four wireless telecom companies, which together account for more than 90 percent of the market, according to Justice.

“The proposed $39 billion transaction would substantially lessen competition for mobile wireless telecommunications services across the United States, resulting in higher prices, poorer quality services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their everyday lives,” the Department said in a release.

Non-profit Public Knowledge issued a statement from Legal Director Harold Feld, saying: “Fighting this job-killing merger is the best Labor Day present anyone can give the American people. AT&T’s effort to recreate ‘Ma Cell’ by holding rural broadband hostage and threatening American jobs deserves nothing but scorn. The FCC should move as quickly as possible to follow the lead of the Department of Justice and reject the merger.”

Deputy Attorney General James M. Cole remarks here.

Acting Assistant Attorney General Sharis A. Pozen remarks here.