It’s being reported this morning by Bloomberg News that the United States government has filed papers with court to block the proposed merger of At&t and T-Mobile on the grounds that it violates anti-trust rules. The papers, filed this morning in a Washington court by the Justice Department states that the proposed merger between the two wireless giants would substantially lessen competition in the wireless markets.
“The U.S. is seeking a declaration that Dallas-based AT&T’s takeover of T-Mobile, a unit of Deutsche Telekom AG (DTE), would violate U.S. antitrust law and a court order blocking any arrangement implementing the deal”.
“AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market,” the U.S. said in its filing”.
At&t and T-Mobile spokespersons have yet to comment on this action and At&t shares fell 96cents this morning on word of this news. Hip Hop Democrat will keep you posted on this story as it continues to break.