US Gov't files to block AT&T's acquisition of T-Mobile

US Gov't files to block AT&T's acquisition of T-Mobile
While IFA is heating up in Europe, huge news is happening stateside as the US Department of Justice has filed to block AT&T’s planned $39 billion acquisition of T-Mobile over anti-competitive concerns, according to reports appearing almost simultaneously on Bloomberg, The Wall Street Journal and Reuters.

The DOJ has grounded its filing by saying that “AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market.” In an official statement on its website, the department clarified that the deal would result in "in higher prices, poorer quality services, fewer choices and fewer innovative products." It also explained that AT&T was pressured by T-Mobile offering a couple of industry firsts including the first Android phone, the Sidekick and national Wi-Fi hotspots. Feel free to check out the source link for the full press release of the Justice Department with all the juicy details and reasoning.

Sprint shares almost immediately jumped 8% on the news as the carrier and its CEO Dan Hesse headed opposition to the deal.

But it’s AT&T that has to face the biggest question now - how about that $3 billion in compensation fees it is required to pay T-Mobile if the deal isn’t approved? AT&T shares dropped 5% immediately. The carrier has to fight not only the DOJ, but also the Federal Communication Committee, which sided with the government on the matter, so its odds aren’t high. 

The FCC has issued the following statement:

"By filing suit today, the Department of Justice has concluded that AT&T’s acquisition of T-Mobile would substantially lessen competition in violation of the antitrust laws. Competition is an essential component of the FCC’s statutory public interest analysis, and although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on competition. Vibrant competition in wireless services is vital to innovation, investment, economic growth and job creation, and to drive our global leadership in mobile.  Competition fosters consumer benefits, including more choices, better service and lower prices."



1. remyrz

Posts: 205; Member since: Oct 28, 2010

YEYYY love competition :)

4. brant

Posts: 24; Member since: Aug 08, 2011

Amen... Now let hope this can actually stop it not just delay it.

26. bigdawg23

Posts: 467; Member since: May 25, 2011

Even if this stopped it won't lower prices. It won't be longer before Sprint drops unlimited. The only way prices will drop to what people want is stop using cell phones, and that ain't happening. Everyone said when AT&T dropped Unlimited in June 2010 it was the end of them. They continue to grow and the iPhone is on VZW and rumored to be hitting T-Mo and Sprint. If price was that important than Sprint and T-Mo would not be bleeding customers.

41. brant

Posts: 24; Member since: Aug 08, 2011

Price is important it just not the only factor. If you think that only having two big companies with one middle size one is better then it is now your entitled to your opinion just like I am. I just happen to see how more carries in Europe leads to better prices and service for the consumer. Att buy tmobile is just one step further away for that.

38. Lucas777

Posts: 2137; Member since: Jan 06, 2011

it will be stopped... which i do not believe shud be allowed to happen... idk it is like google buying moto or hp buying palm... its a player in the game who's loosing and gets bought buy another player... the gov really shudnt block the deal if att has raised the funds and been successful as a company...

43. brant

Posts: 24; Member since: Aug 08, 2011

This would be more like Google or Apple buying rim not Motorola.

90. Lucas777

Posts: 2137; Member since: Jan 06, 2011

not really.. tmobile wasn't on that much of a downline.. they were like moto which was declining slightly over time.. and its not like they provide much more to the market than moto does.. they offer service just like moto does and they are one of many just like moto...

110. fairly_mismatched unregistered

It's not like Google buying Moto at all. Google and Motorola were not in competing markets. Google is software/search (advertising?), Moto is hardware. Even with HP buying Palm. What you essentially had was a hardware company acquiring software in the form of WebOS. A more accurate analogy would be Google buying Bing. Which would be "search" buying "search" competitor.

20. firebo14

Posts: 77; Member since: Aug 16, 2011

"in higher prices, poorer quality services, fewer choices and fewer innovative products." That is completely true, it is similar to Apple, if they are the only one selling, then there are higher prices, poorer quality services, fewer choices and fewer innovative products.

83. WakaFlakaD

Posts: 576; Member since: Apr 30, 2011

This has made my day! THANK GOD+ JESUS!

97. mannyfs

Posts: 69; Member since: Feb 11, 2011

yeah i dont think anyone at all supports this, effff u ATT!

2. oddmanout

Posts: 443; Member since: May 22, 2009

I can just see Dan Hesse screaming "YES!" while fist pumping and doing cartwheels in joy.

44. wolfordtw

Posts: 16; Member since: Aug 17, 2011

Lmao yeah I bet mr hesse was just caught beating off in his office

70. Droid_X_Doug

Posts: 5993; Member since: Dec 22, 2010

Hesse is definitely the big winner in this outcome. Any AT&T-Mobile combination is basically dead going forward. If AT&T tries to fight the DOJ in the courts, it will be time to short the AT&T stock. They gambled and lost. Now T-Mobile gets to see if they can construct a business plan around the break-up fee and the other concessions AT&T had to put on the table to do the deal. One other possible outcome is where Sprint picks up T-Mobile and gets access to the AT&T LTE network.... That would be the ultimate irony - Sprint f*cking AT&T.

3. iKingTrust

Posts: 716; Member since: Jul 27, 2011

I tipped this story. yea boy

16. GoWKing unregistered

Did you have to? The same article hit BGR. engadet, and tmonews hours ago.

21. iKingTrust

Posts: 716; Member since: Jul 27, 2011

Its not my fault this website is late.

52. KEVlN

Posts: 83; Member since: Aug 19, 2011

i gave u a thumbs up just because u had unnecessary thumbs downs. but i think hes trying to say that big news like this don't need tipping. And i agree. I'm sure they knew about this around the same time all the other tech reporting sites knew. If they found this news through you, they would have acknowledged your name or stated that it was tipped in the article. The tip button is mainly for news that you encountered yourself, not through other sites (especially other big tech sites who already posted articles on the matter). Not trying to rain on your parade but its there job to know these things asap and the odds of them finding this news through you is unlikely.

65. iKingTrust

Posts: 716; Member since: Jul 27, 2011

Why would it be unlikely? Do you even know who i am? I will answer that, NO. As a site about tech, they should have posted this when tehy got the email this morning. It aint my fault like i said, i was trying to help out.

111. fairly_mismatched unregistered

The reciprocal could also be stated... do you even know who KEVIN is? My guess is no. I honestly am not sure which is worse, beer muscles or internet muscles. Sheesh, he even gave you a thumbs up...

22. pyckvi

Posts: 48; Member since: Dec 19, 2010

thanks for tipping this story here :-) this is the only site i like reading news on. i preffer here rather than phonedog phonescoop gsmarena etc

24. iKingTrust

Posts: 716; Member since: Jul 27, 2011

Honestly me too. I like the set up. Plus i love all the Anti Apple talk. I love to see people bothered over a company they have no control of, lol. Im wierd. I feed off haters.

56. GoWKing unregistered

No reason to thank him 4 taking credit 4 things he didnt do. The article wasnt tipped. He mite have submitted the tip but PA didnt find out by him

58. oddmanout

Posts: 443; Member since: May 22, 2009

-1 No need to be rude about it. Why does every post have to have drama in the comments? Just play nice lol. Who cares if he tipped or not... let him have his glory lol.

69. iKingTrust

Posts: 716; Member since: Jul 27, 2011

Thank you oddmanout. I just made them aware that this story needed to be posted. i like using this site but they need to be more on point with the news. When i say "i tipped" i was just messing around. This is obviously public record. And who the f**k writes 4? It's for dumb ass. A typo is one thing being ignorant is another. Ok i feel better now. LOL.

66. iKingTrust

Posts: 716; Member since: Jul 27, 2011

Who gives a f**k? They should have been posted this.

5. Mobile-X-Pert

Posts: 565; Member since: Dec 20, 2010


6. Mr.Mr.Upgrade

Posts: 474; Member since: Aug 30, 2011

Mann at&t just can't win, first your wife iPhone cheats on you with Verizon,now she prostituting for sprint and t mobile for nickels and dimes, what a hooker lol

7. snowgator

Posts: 3621; Member since: Jan 19, 2011


8. iKingTrust

Posts: 716; Member since: Jul 27, 2011

lmao m

Latest Stories

This copy is for your personal, non-commercial use only. You can order presentation-ready copies for distribution to your colleagues, clients or customers at or use the Reprints & Permissions tool that appears at the bottom of each web page. Visit for samples and additional information.