Our government wants to block monopolistic actions by big business that might/would hurt the consumer? How refreshing!
The U.S. government sued to block AT&T Inc. (T)’s proposed $39 billion acquisition of T-Mobile USA Inc., saying the deal would “substantially lessen competition” in the wireless market. AT&T shares fell as much as 5 percent.
In the complaint filed today in federal court in Washington, the U.S. is seeking a declaration that Dallas-based AT&T’s takeover of T-Mobile, a unit of Deutsche Telekom AG (DTE), would violate U.S. antitrust law. The U.S. also asked for a court order blocking any arrangement implementing the deal.
“AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market,” the U.S. said in its filing.
Will the government be forced to back down once the corporations whine?
Notice I used the word “forced”.
O’Bama just can’t be seen favoring anything that will lose jobs in the runup to 2012. Look for AT&T to make some minor concessions and promise not to fire any workers during the transition then Justice will back off.
It’s about time! Before every corporation is Taco Bell!
Rick Perry will not stand for this!
I’m sure Verizon greased some Republican for this ruling.
WTF! The federal government is doing the right thing for once? INCONCEIVABLE!!
So Obama is thumbing his nose at 1.) unions and 2.) American companies.
1.) The merger meant a boon for the Communication Workers of America union, which would absorb the T-Mobile employees of the merger into their ranks.
2.) The decision to block the merger will pay off rather handsomely for the German owner Deutsche Telekom AG (DTE). AT&T will pay DTE $3 billion in cash if the deal is blocked.
Translation: AT&T needs to pay up.
Yea sprint will survive for another few years now with their crappy service and fake 4g
Other possible translation, Craig McCaw gave money to Barack Obama to buy access. Now this is what he wants, to prevent competition for ClearWire, just like before he got the government to delay Digital TV to keep Verizon from getting its hand on unused spectrum.
Millions to the members of the House and Senate and AT&T forgot to buy the Justice Department. You know that will never happen again.
#5, Why would Verizon want to block the merger? A wireless duopoly between AT&T and Verizon would be immensely profitable for both of them.
AT&T didn’t put enough money in Obama’s pockets, typical Chicago tactics, Rahm taught Barry well…
Wow, the justice department came out of its coma.
#9 Pmitchell
I think that is so funny since Sprint usually is pretty high in customer satisfaction http://www.zdnet.com/blog/btl/customer-satisfaction-were-not-thrilled-with-wireless-telephone-and-tv-carriers/48937surveys while AT&T is *always* rated as the worst.
I moved from AT&T to Sprint last January and would never think of going back. AT&T, the never ending black hole of garbage service that reinvents itself every few years by trying to become a redefined oligopoly. I hope 1974 comes back to haunt these douchebags.
They are late to this game.
there is a god.
A combination of the worst service and highest bills… what’s not to like?
Wow, could this be possible? This might be the first and only good thing that ever happens under this president!!!!
I guess someone in the DOJ felt like they needed to do something since Obama has instructed them to stop enforcing most of the laws they are responsible for enforcing (oh you know little things like deporting illegal aliens), undermining an entire branch of government as well as the constitution. In the mean time, they have instead been busy suing states and raiding Gibson Guitar. I guess someone must have finally decided they should take a break from destroying the United States and actually do their job!