Several states may block T-Mobile-Sprint merger
T-Mobile’s acquisition of Sprint is a major change in the telecom landscape in the United States, and several state attorney generals are worried this might hurt competition. According to Bloomberg, California and New York are leading a group of over a dozen states that would file a lawsuit if the Department of Justice does not challenge the deal.
Initially, T-Mobile offered $26.5 billion to acquire Sprint and all its market presence, making it a challenger to AT&T and Verizon’s dominance in the United States. The new conglomerate would control over 30% of the US wireless market, with an even higher share in some states.
Unnamed sources for Bloomberg said state enforcers have the power to go to court to block the tie-up even if federal officials at the Justice Department and the FCC approve it. Company representatives on both sides are yet to comment on the matter, but in the meantime, shares fell around 1% after the announcement.
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Reader comments
- FB in D
- 30 Apr 2019
- g@X
I guess I'm in favor. T-Mobile and Sprint are both inefficiently structured now, and this will bring about a third viable competitor on the national scene. V and ATT need a strong competitor. I just hope it's not like the airlines all over again. Ser...
- NOX
- 31 Mar 2019
- GA1
D you mean " Oligopoly "
- Qwericus
- 30 Mar 2019
- qaZ
If this merger goes through? Then....welcome to Canada! Where the cellphone market is basically an ogopoly, with constantly high prices and little incentive to compete on price or service. Enjoy!
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