State Attorneys General Will Sue to Stop Sprint and T-Mobile Merger: Report

T-Mobile CEO John Legere (L) and Sprint Executive Chairman Marcelo Claure testify before the House Judiciary Committee’s Antitrust, Commercial and Administrative Law Subcommittee in the Rayburn House Office Building on Capitol Hill March 12, 2019 in Washington, DC.
T-Mobile CEO John Legere (L) and Sprint Executive Chairman Marcelo Claure testify before the House Judiciary Committee’s Antitrust, Commercial and Administrative Law Subcommittee in the Rayburn House Office Building on Capitol Hill March 12, 2019 in Washington, DC.
Photo: Chip Somodevilla (Getty)

It’s been one year since T-Mobile announced its intention to buy Sprint for $26 billion and, despite some scrutiny, the mega-merger has trudged forward at pace, save a few hiccups. That might have something to do with the lobbying blitz the companies embarked on a year ago.

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Now the two telecom giants face a new and significant hurdle: At least 10 state attorneys general, led by New York, will file a lawsuit to stop the deal, according to a report in Reuters. New York’s attorney general will reportedly hold a press conference on Tuesday afternoon to discuss the legal action.

While Ajit Pai, chairman of the Federal Communications Commission, already supports the deal with a few questionable stipulations, the T-Mobile/Sprint merger also faces a closer look from the U.S. Justice Department, which is currently investigating the competition implications of taking the U.S. wireless market from four carriers to three.

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Attorneys within the DOJ’s antitrust division have reportedly recommended that the department file a lawsuit to block the deal, it has yet to do so.

T-Mobile, Sprint, and the New York Attorney General’s Office did not immediately respond to request for comment.

Reporter in Silicon Valley. Contact me: Email poneill@gizmodo.com, Signal +1-650-488-7247

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DISCUSSION

FWIW if regulators and AG’s don’t want Sprint and T-Mobile to merge then they should also be filing to break up Verizon and AT&T given that even a merged Sprint-Mobile would have fewer subscribers than Verizon and AT&T still.