US Justice Department files a suit against AT&T and T-Mobile merger

AT&T plans to acquire T-Mobile USA for $39 billion were announced back in March, but after the TV ad in June, we haven't heard much about it except perhaps that AT&T was expecting the whole thing the end in Q1 2012 if things go smoothly.

Well, they've gone anything but smoothly as obviously the authorities have some issues with the planned deal. The Justice Department has just filed a suit against the acquisition. At a press conference the Deputy Attorney General explained this deal should be blocked because it would result in "tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services."

The purpose of this suit is to ensure the AT&T and T-Mobile users a fair market and prices.

So, it’s still early to tell how this will end up, but for now it’s likely the merger is on hold.