U.S. state AGs are suing to stop the $26.5B T-Mobile-Sprint merger
Category: #headlines |   By Saipriya Iyer |   Date: 2019-12-10

U.S. state AGs are suing to stop the $26.5B T-Mobile-Sprint merger

Attorneys general from over a dozen states are reportedly suing to block T-Mobile’s $26.5 billion megamerger with Sprint, alleging that the deal violates anti-competitive law. The state attorneys general claim that the deal between two of the top U.S. telco giants would reduce competition and cost Americans billions of dollars in bills.

Sources close to the matter reported that the trial was scheduled to commence on Monday in the U.S. District Court for the Southern District of New York. Attorneys general for 13 states along with the District of Columbia were to challenge the $26.5 billion merger between America’s third- and fourth-largest telecom giants.

The complaint which was filed in June this year allegedly claimed that majority of low-income subscribers can afford to subscribe to mobile wireless telecom services only on a prepaid basis and the harms faced by these subscribers would be particularly higher.

Apparently, mobile handsets for many Americans is their primary, or even only, means of accessing the internet. As such, money spent on mobile wireless telecom services is supposedly among the highest monthly expenses in many American low-income households.

New York Attorney General Letitia James had stated in June that the deal would stifle competition, harm valuable consumers and cut jobs. Unity among the states will be crucial in defending American citizens against the power-hungry corporate union, she added.

Also read: The Big Four U.S. carriers team up to build next-gen RCS texting app

Reportedly, several other states had initially supported the lawsuits ahead of the scheduled trial date but had eventually decided to pull out after striking deals. Mississippi and Colorado dropped from the lawsuit in October, while Texas and Nevada withdrew in November.

The U.S. Justice Department had approved the deal in July. Following this, the Federal Communications Commission, led by Ajit Pai, officially approved the deal last month. However, attorneys general who stayed attached to the lawsuit claimed the deal is bad both for businesses and customers across America.

Top Democratic lawmakers had criticized the merger, including presidential candidate Senator Bernie Sanders who reacted by tweeting that the FCC’s decision to okay the merger was a disastrous one.

 

Source credits: https://gizmodo.com/t-mobile-and-sprint-head-to-court-to-defend-their-very-1840317115

  • shareShare
  • Twitter
  • Facebook
  • LinkedIn


About Author

Saipriya Iyer     Twitter

Saipriya Iyer

A content developer by choice, Saipriya Iyer holds a rich experience portfolio of more than five years in the content creation domain. Equipped with substantial expertise across the business, technology, and finance domains, Saipriya currently pens down insightful art Read more...

More News By Saipriya Iyer

Infosys to open office in Calgary, aims to hire 1000 people by 2024

Infosys to open office in Calgary, aims to hire 1000 people by 2024

By Saipriya Iyer

Tech giant Infosys, which has operations in 50 countries, will set up its digital center in Gulf Canada Square. Over the next two years, Infosys aims to create 1,000 new jobs in Calgary by 2024, according to reliable reports. This was almost doubl...

Government-led initiatives can address Africa's food insecurity, claims report

Government-led initiatives can address Africa's food insecurity, claims report

By Saipriya Iyer

A new report released recently in the Rwandan capital of Kigali has urged African governments to take the lead and coordinate internal and external initiatives to address the continent’s food insecurity swiftly and comprehensively. The Allia...

Iron Pillar seeking USD 400 million to empower tech startups in India

Iron Pillar seeking USD 400 million to empower tech startups in India

By Saipriya Iyer

An investment company that is known to back tech startups, Iron Pillar, is reportedly looking to raise around USD 400 million to help boost the startup ecosystem in India. The venture capital firm is already in advanced deliberations with limited par...