Justice Department Files Suit to Block T-Mobile Takeover
By Dennis Kuba
September 1, 2011
September 1, 2011
- The Justice Department is blocking the proposed $39 billion takeover of T-Mobile by AT&T, citing the move would result in less competition and higher prices. AT&T said it was “surprised and disappointed” by the suit.
- The FCC is also reviewing the deal and has “serious concerns” about its impact on competition. The antitrust challenge comes five months after the deal between the second- and fourth-largest cellphone companies in the U.S. was announced.
- “The lawsuit is the Obama administration’s boldest antitrust challenge to date and the latest evidence of its intention to reinvigorate enforcement after what it says was a lull during the previous administration,” reports The Wall Street Journal.
- However, the Justice Department left open the possibility of concessions which could lead to a settlement.
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