Today, the United States Department of Justice has sued to block
AT&T's proposed $39 billion acquisition of T-Mobile.
The
Justice Department said in its suit that "AT&T's elimination of
T-Mobile as an independent, low-priced rival would remove a significant
competitive force from the market."
According to a Wall
Street Journal article, during a news conference today Deputy Attorney General James Cole
said the combination would result in tens of millions of consumers facing fewer
choices and lower-quality products. It also quoted FCC Chairman
Genachowski as saying that "Although our process is not complete, the
record before this agency also raises serious concerns about the impact of the
proposed transaction on competition.''
The Department of Justice said the "door is
open" to AT&T to propose remedies that might make the deal more
acceptable.
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