wpostServer: http://css.washingtonpost.com/wpost2

Most Read: Business

DJIA
-0.42%
S&P 500
-0.45%
NASDAQ
-0.05%
 Last Update: 07:29 PM 07/29/2014

World Markets from      

 

Other Market Data from      

 

Key Rates from      

 

Blog Contributors

Timothy B. Lee

Timothy B. Lee

Timothy B. Lee covers technology policy, including copyright and patent law, telecom regulation, privacy, and free speech. He also writes about the economics of technology. He has previously written for Ars Technica and Forbes. You can follow him on Twitter or send him email.

Brian Fung

Brian Fung

Brian Fung covers technology for The Washington Post, focusing on electronic privacy, national security, digital politics and the Internet that binds it all together. He was previously the technology correspondent for National Journal and an associate editor at the Atlantic. His writing has also appeared in Foreign Policy, Talking Points Memo, the American Prospect and Nonprofit Quarterly. Follow Brian on Google+ .

Andrea Peterson

Andrea Peterson

Andrea Peterson covers technology policy for The Washington Post, with an emphasis on cybersecurity, consumer privacy, transparency, surveillance and open government. She also delves into the societal impacts of technology access and how innovation is intertwined with cultural development.

Post Tech
About / Where's Post I.T.?   |    Twitter  |   On Facebook  |  RSS RSS Feed  |  E-Mail Cecilia
Posted at 10:53 AM ET, 08/31/2011

Justice Department files to block AT&T, T-Mobile merger

The U.S. Department of Justice has filed papers in federal court in Washington to block AT&T’s $39 billion acquisition of T-Mobile, Deputy Attorney General James M. Cole in a news conference Wednesday.

The U.S. is asking the court to declare the deal in violation of U.S. antitrust law.

“We feel the combination of AT&T and T-Mobile would fall on tens of million of consumers all over the United States,” said Cole.

The DOJ said that it is seeking to block the merger on the grounds that it would diminish competition in the wireless space and raise prices for consumers.

Cole said that competition in the industry is crucial for consumers and that AT&T — the nation’s second-largest carrier -- had identified T-Mobile — the fourth-largest — is a key competitor and innovator in the market.

“This lawsuit seeks to ensure that eveyone can continue to enjoy the benefit of that competition,” he said.

Shortly after the two companies announced their intent to merge in April, the Federal Communications Commission was inundated with comments calling on the agency to block the merger.

AT&T and T-Mobile have said a merger between the two companies would help expand high-speed broadband coverage to 97 percent of the country. Before the DOJ announcement Wednesday morning, AT&T had pledged to return 5,000 outsourced call center jobs to the U.S. if the merger was approved, an announcement hailed by the Communications Workers of America.

AT&T shares fell four percent to $28.21 during the DOJ’s 11 a.m. press announcement, while Sprint stock surged nine percent.

Related stories:

FCC asks AT&T for more information on merger

FCC restarts the clock on AT&T, T-Mobile deal

FCC temporarily halts review of AT&T merger with T-Mobile

By  |  10:53 AM ET, 08/31/2011

 
Read what others are saying
     

    © 2011 The Washington Post Company