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State Attorneys General Sue to Block T-Mobile/Sprint Merger

Jun 11, 2019, 11:35 AM by Rich Brome @richbrome

A group of ten states is suing to block the proposed merger of T-Mobile and Sprint. The action is led by New York State Attorney General Letitia James and California Attorney General Xavier Becerra. James outlined the crux of the states' argument in a tweet, saying "The merger would deprive customers of the benefits of competition & drive up prices for cellphone services." Today's action follows an investigation by the attorneys general, which "found that many of the claimed benefits [of the proposed merger] were unverifiable and could only be delivered years into the future, if ever. By contrast, if the merger were to go through, the combined company would immediately have the power and incentive to raise prices." "Additionally... the ten states are concerned that further consolidation at the carrier level would lead to a substantial loss of retail jobs." The complaint was filed in United States District Court for the Southern District of New York.

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gloopey1

Jun 13, 2019, 7:33 AM

Prolonging the inevitable

No matter how many legal challenges arise, all they’ll accomplish is delaying the inevitable. Companies like these merge all the time, and proving their joining together will somehow make the marketplace less competitive would be a difficult task, considering one of them (likely Sprint) will go out of business, leaving behind three mega-companies anyway.

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