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US Government to Block Proposed AT&T- T-Mobile Merger

Steven Blum


According to Bloomberg, the U.S. government has just filed court papers in Washington D.C. to block the much-maligned merger of AT&T and T-Mobile. This doesn't mean the merger will or won't happen, but it certainly represents a sizeable stumbling block.

In their papers, the U.S. government writes that the deal would "substantially lessen competition" in wireless markets (well, shyeah). The U.S. is alleging that the merger would violate U.S. antitrust law and would like to block 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.

If things fall apart, AT&T will still have to pay Deutsche Telekom a $3 billion break-up fee. Damn.

Not so surprisingly, AT&T stocks have already dipped 96 cents since the news broke. 

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  • Aaron Android Aug 31, 2011 Link

    I sure hope that AT&T goes down like a rock. This merger means nothing but misery for us consumers. And don't believe a word from AT&T about how this will improve service. That's a bunch of BS from a big corporation. They are going to continue with the same old story, day in and day out.