US Justice Department moves to block AT&T, T-Mobile merger [Updated]

att-tmobile-justice-department-antitrust

AT&T may not be allowed to buy T-Mobile, after all. The US Justice Department has filed an antitrust complaint to block AT&T, the second largest wireless carrier in the US, from purchasing T-Mobile USA Inc. from Deutsche Telekom AG for $39 billion, reports Bloomberg. The complaint says the deal would “substantially lessen competition” in the wireless market.

According to the complaint, which was filed today at a federal court in Washington D.C., the merger of the two wireless companies would violate US antitrust laws. If approved, the merger would have made AT&T the largest wireless company in the US, after the current leader, Verizon Wireless.

“The combination of AT&T and T-Mobile 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,” said James M. Cole, the deputy attorney general, in an official statement. “Consumers across the country, including those in rural areas and those with lower incomes, benefit from competition among the nation’s wireless carriers, particularly the four remaining national carriers. This lawsuit seeks to ensure that everyone can continue to receive the benefits of that competition.”

Much of the complaint centers on the competitive relationship between AT&T and T-Mobile. According to the Justice Department’s filing, the two companies currently compete for customers in 97 of the nation’s 100 largest cell phone markets. In addition, T-Mobile has put pressure on the wireless industry as a whole by offering a wide variety of “firsts” to the market, including the first Android handset, national Wi-Fi hotspot access, unlimited service plans and the first nationwide HSPA+ high-speed wireless network.

News of the Justice Department’s blockage of the deal comes just as AT&T made a desperate vow to bring 5,000 new jobs back to the United States as an attempt to persuade federal regulators to approve the deal. AT&T faces penalties of between $3 billion and $6 billion if the deal falls apart.

UPDATE 1: AT&T’s senior counsel Wayne Watts, has issued a comment on the Justice Department’s decision to file the suit. The full text, below:

“We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DOJ that this action was being contemplated. We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed. The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court. At the end of the day, we believe facts will guide any final decision and the facts are clear. This merger will:

· Help solve our nation’s spectrum exhaust situation and improve wireless service for millions.
· Allow AT&T to expand 4G LTE mobile broadband to another 55 million Americans, or 97% of the population;
· Result in billions of additional investment and tens of thousands of jobs, at a time when our nation needs them most.

We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court.”

UPDATE 2: FCC Chairman Julius Genachowski issued the following email after the Justice Department’s filing:

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.

[Image via Mike Flippo/Shutterstock]

Emerging Tech

Awesome Tech You Can’t Buy Yet: Grow veggies indoors and shower more efficiently

Check out our roundup of the best new crowdfunding projects and product announcements that hit the web this week. You may not be able to buy this stuff yet, but it sure is fun to gawk!
Home Theater

Reasons not to mount a TV over your fireplace (and other helpful tips)

Mounting a TV above your fireplace may be popular and it might even seem appealing, but we have some concerns. We've got a list of reasons why placing your digital picture machine over a fire should be avoided, if at all possible.
Mobile

Barbie’s Corvette ain’t got nothing on Sphero’s fully programmable robot car

Sphero is known for devices like the Sphero Bolt and BB-8 Star Wars toy, but now the company is back with another addition to its lineup -- the Sphero RVR. The RVR is a fully programmable robot car that can be expanding with different…
Computing

Breaking: Amazon won’t build headquarters in New York in face of opposition

Amazon has canceled plans for a New York City headquarters afer citizens, civic groups, and politicians pushed back on Governor Andrew Cuomo and New York City Mayor Bill de Blasio's exclamation of economic joy over Amazon's earlier…
Mobile

Samsung Galaxy S10 vs. S10 Plus vs. S10e vs. S10 5G: Which should you buy?

With four stunning Galaxy S10 phones to choose from, Samsung is bombarding us with choice, but which one should you buy? We compare the S10, S10 Plus, S10e, and S10 5G in various categories to find out exactly how they differ.
Wearables

Samsung's new Galaxy Watch Active can track your blood pressure

Looking for a new fitness buddy? Samsung just launched the Galaxy Watch Active and the Galaxy Fit, two new wearables with a raft of fitness-focused features that'll keep you moving and get you down the gym.
Mobile

Adobe Premiere Rush CC is coming to the Samsung Galaxy S10 this year

The Samsung Galaxy S10 boasts a number of hardware improvements over previous Samsung phones, but it also offers a few software improvements too. Adobe Premiere Rush CC, for example, is coming to the Samsung Galaxy S10 later this year.
Gaming

Samsung Galaxy S10 optimizations make it great for Fortnite

Samsung's new line of Galaxy S10 devices have been optimized for gaming. All three offer improved support for the Unity engine and the S10 Plus also offers vapor chamber cooling, similar to the Xbox One X.
Mobile

From folding phones to 5G -- here's everything we saw at Galaxy Unpacked

Samsung's Galaxy Unpacked event treated us to a real parade of technological excellence, from folding phones to new fitness wearables. Here's everything we saw at Galaxy Unpacked on February 20.
Mobile

Google’s radical Gmail redesign is finally rolling out on Android

Google is slowly but surely giving its apps a refresh, modernizing them and ensuring that they're easy to use. The latest app to get a redesign is the Gmail app for Android, which has been redesigned with a few tweaks.
Mobile

The best Samsung Galaxy S10 Plus cases to protect your $1,000 phone

Can't get enough of big phones? The Samsung Galaxy S10 Plus is absolutely up your alley. But it's still fragile, and damage is easily gathered through normal life. Protect it with the best Galaxy S10 Plus cases.
Mobile

Samsung Galaxy S10 vs. Galaxy S9: How much better is Samsung’s new flagship?

You'd naturally expect the Samsung Galaxy S10 to be better than last year's S9, but just how do the two phones differ? We break down the specs and compare Samsung's flagships in various categories to pick a winner.
Product Review

The Galaxy Watch Active is the right size for you, no matter how big or small your wrist is

Launched among a massive array of other new products, the Samsung Galaxy Watch Active could easily have been missed at Galaxy Unpacked 2019 -- which would be unfortunate. This is a sensibly designed, correctly sized smartwatch suitable for…
Mobile

Protect and style your Samsung Galaxy S10 with the best cases and covers

If you've splashed the cash for a shiny new Samsung Galaxy S10, then you'll want to take steps to protect your investment. With a metal frame and glass curves, the S10 needs some cover. Check out the best Samsung Galaxy S10 cases.