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.
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.
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.