Courtesy of Benzinga.
According to a report from Bloomberg, the United States Justice Department has filed a complaint to block AT&T’s $39 billion acquisition of T-Mobile, which was announced back in March of this year. The complaint cites that the deal going through would violate U.S. antitrust law.
AT&T has responded to this complaint filed by the DOJ, stating that it is “surprised and disappointed,” mainly because the carrier has met with the DOJ on multiple occasions and there was no evidence that this was even being discussed. The full response is below:
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.
In addition, the Federal Communications Commission (FCC) has responded (.PDF) to the suit, stating that if this deal would go through there would be “substantially” lessened competition in the carrier market. The FCC’s entire statement is below as well:
By filing suit today, the Department of Justice has concluded that AT&T’s acquisition of T-Mobile would substantially lessen competition in violation of the antitrust laws. Competition is an essential component of the FCC’s statutory public interest analysis, and although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on competition. Vibrant competition in wireless services is vital to innovation, investment, economic growth and job creation, and to drive our global leadership in mobile. Competition fosters consumer benefits, including more choices, better service and lower prices
Finally, Sprint has issued a response to the DOJ’s decision earlier today as well. Sprint says that it “applauds” the decision and that it appreciates the DOJ putting consumers’ interests first. Sprint’s full statement is below:
The DOJ today delivered a decisive victory for consumers, competition and our country. By filing suit to block AT&T’s proposed takeover of T-Mobile, the DOJ has put consumers’ interests first. Sprint applauds the DOJ for conducting a careful and thorough review and for reaching a just decision – one which will ensure that consumers continue to reap the benefits of a competitive U.S. wireless industry. Contrary to AT&T’s assertions, today’s action will preserve American jobs, strengthen the American economy, and encourage innovation.
What do you think about the Department of Justice’s decision?
