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Thursday, September 15, 2011

postheadericon DOJ closes door on AT&T

Our economy was built on a legacy of hard work, entrepreneurship, and competition. Protecting that legacy, especially during times of economic hardship, must continue to be a priority.

In reaffirming its commitment to ensuring competition, innovation, and jobs in the wireless industry, the Department of Justice recently sued to thwart efforts by AT&T to takeover T-Mobile.

The decision should come as no surprise. From an antitrust perspective, AT&T’s bid for T-Mobile was a nonstarter. DOJ carried out a thorough examination of the merger and concluded what we have been saying from day one: the elimination of T-Mobile as a national competitor and an industry maverick would likely lead to higher prices, lower quality service, and reduced innovation. 

As alleged in the complaint, the proposed merger would reduce the number of significant competitors from four to three nationally and substantially increase concentration in a multitude of already! highly concentrated local markets. The merger raises a significant risk that the wireless market will revert to a duopoly, and the Justice Department correctly concluded the deal would “eliminate a company that has been a disruptive force through low pricing and innovation by competing aggressively in the mobile wireless telecommunications services marketplace.”  



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