The United States has now made a move to block the AT&T and T-Mobile from merging into one super mobile company. The U.S. Justice Department filed paperwork to block the merger from happening.
The U.S. Justice Department is claiming that the merger between the two cellular company would violate antitrust laws. In their claim the department says that:
…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.
Within the same day AT&T responded to the Department of Justice’s complaint saying that it did not expect the U.S. Government to get involved in this matter. They of course said that they would not back down from the filing and would fight it in court to continue the merger.
Back in March, AT&T announced that it had intentions to takeover T-Mobile and was moving forward, this brought controversy all over the web about the merger and other companies would not allow it. Now that the U.S. is getting involved AT&T had their first big blow and their stock price dropped 5% from the announcement today.
It might be a very different ball game now that the U.S. is intervening. Since March we know there’s been an uprise and it won’t stop. The future of T-Mobile is uncertain but it looks like it won’t happen.
What are your thoughts? Should AT&T and T-Mobile merge?