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U.S. files antitrust complaint vs AT&T to block T-Mobile takeover

The U.S. government has filed to block AT&T much maligned proposed acquisition of T-Mobile USA for $39 billion.

If successfully blocked, AT&T will have to pay a huge breakup fee of $3 billion to Deutsche Telekom (TMo's parent company) as well as $4 billion worth of wireless spectrum.



Says the DOJ:

AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market.

The DOJ complaint seeks a court order blocking any arrangement implementing the deal.

Additionally, the DOJ says blocking the deal will help save jobs in the U.S.

AT&T just responded:

We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the DOJ.

Written by: Andre Yoskowitz @ 31 Aug 2011 10:38

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• 24 comments

• harhumph

  Wait a minute, my government doing the right thing for the customers and public... am I in the twilight zone, am I dead, this Shirley can't be write, just like that spelling!!!

  31.8.2011 11:56 #1

• ZeusAV

  Originally posted by harhumph: Wait a minute, my government doing the right thing for the customers and public... am I in the twilight zone, am I dead, this Shirley can't be write, just like that spelling!!! I know. I almost couldn't believe the headline when I saw it. I was certain that AT&T had bought out all of the politicians who could block this buyout.

  31.8.2011 12:12 #2

• plutonash

  So would ATT just pay the break up fee of T-mob. If so, then there would still only be 3 major carriers. They might as well let ATT swallow T-mob and get some use of out their equipment.
  

  "Cable thief is a victimless crime."

  31.8.2011 12:25 #3

• ROMaster2

  Big Government - 1
  
  Free Market - 0

  31.8.2011 12:39 #4

• DVDBack23

  I could not be happier with this. I hope T-mobile uses all $3 billion they get in cash and keep improving our 4G and cell service quicker than they had initially planned.
  

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  31.8.2011 12:57 #5

• ZeusAV

  Originally posted by plutonash: So would ATT just pay the break up fee of T-mob. If so, then there would still only be 3 major carriers. They might as well let ATT swallow T-mob and get some use of out their equipment. T-Mobile would still be around. AT&T would pay them the breakup fee and also give them spectrum. The 3 billion would cover the money T-Mobile has invested in improving their network over the past few years. It would actually make them a pretty viable company again.

  31.8.2011 12:57 #6

• wukka

  at the start Unkle Skam shoulda said, "Uh, no...we split up Ma Bell years ago for a reason you fools."
  
  providers & mobile carriers need to be shaken up...they are fkn rippin people off...for example, the arrogance of charging some people say 20cents for a text message, which is nothing more than a brief blip of data across the network(s).
  

  31.8.2011 13:00 #7

• Semperfipal

  Its about time someone at DOJ woke up and did the right thing!

  31.8.2011 14:06 #8

• DDR4life

  Originally posted by harhumph: Wait a minute, my government doing the right thing for the customers and public... am I in the twilight zone, am I dead, this Shirley can't be write, just like that spelling!!! It is write. And don't call me Shirley. lol.
  In all seriousness, however, this is great news I should think. Hopefully I won't have to see that horrid at&t logo on my bill. <jumping 4 joy>
  

  31.8.2011 18:09 #9

• deak91

  well if all else it will be call at&t-mobile on the bill
  

  31.8.2011 20:36 #10

• Xian

  I am glad to see it blocked, I didn't want to have to go with AT&T. I have a prepaid phone from T-Mobile since I don't make very many calls - it costs me 10 cents a minute, and I use about $15 worth a month. With AT&T's prepaid, you also have a $1 a day access fee, so if I were to use the phone for 5 minutes a day it would cost me $1.50 a day instead of the $0.50 I currently pay for the minutes only.

  31.8.2011 21:38 #11

• llongtheD

  Its a long way from over, the deal could still go through.
  

  If your fish seems sick, put it back in the water.

  31.8.2011 21:38 #12

• Azuran

  Yeah its not blocked. A judge will have the final say. Here's hoping for a block though.
  

  31.8.2011 22:07 #13

• biglo30

  Great news I hope they win and T-mobile get their cash

  31.8.2011 22:18 #14

• llongtheD

  Originally posted by Azuran: Yeah its not blocked. A judge will have the final say. Here's hoping for a block though. I hope so to, the DOJ needs to look into corporate consortiums buying up these huge blocks of patents as well.
  

  If your fish seems sick, put it back in the water.

  31.8.2011 22:31 #15

• Mrguss

  I do not like AT&T....but the fight is not over yet:
  AP full info.
  http://apne.ws/r1j7JA
  
  The DOJ filed 138 antitrust cases in federal courts from 1999 to 2008 and lost 4 of them.
  

  +4000

  1.9.2011 06:24 #16

• DVDBack23

  Originally posted by Mrguss: The DOJ filed 138 antitrust cases in federal courts from 1999 to 2008 and lost 4 of them. heh 97% victory rate...I like it
  

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  1.9.2011 11:46 #17

• Zirdo

  At the end of the day, either of them will keep on ripping us off.. :(

  1.9.2011 11:54 #18

• hearme0

  Just as I predicted and stated over and over and over again. This ain't happening. US will not allow 20% of competition being eliminated.

  2.9.2011 13:47 #19

• KillerBug

  Originally posted by hearme0: Just as I predicted and stated over and over and over again. This ain't happening. US will not allow 20% of competition being eliminated. If it wasn't all over the news, it would have happened already. Even with media coverage, it is hard to think that the government might actually do the right thing...as far as I am concerned it is all just pandering until the law is being enforced. If AT&T has billions to spend on eliminating the competition in order to reduce quality and increase prices, just think how big those bribes must be. More than likely, this was filed by the one person in washington that AT&T forgot to bribe...and it will probably go away as soon as AT&T pays said bribe.
  

  
  

  3.9.2011 05:50 #20

• hearme0

  Originally posted by KillerBug: Originally posted by hearme0: Just as I predicted and stated over and over and over again. This ain't happening. US will not allow 20% of competition being eliminated. If it wasn't all over the news, it would have happened already. Even with media coverage, it is hard to think that the government might actually do the right thing...as far as I am concerned it is all just pandering until the law is being enforced. If AT&T has billions to spend on eliminating the competition in order to reduce quality and increase prices, just think how big those bribes must be. More than likely, this was filed by the one person in washington that AT&T forgot to bribe...and it will probably go away as soon as AT&T pays said bribe. Umm, you're incorrect and clearly a conspiracy theorist. Conspiracy theorists never are right.
  
  
  FYI....this isn't "one person" but the DOJ recognizing that removing T-Mobile is knocking 20% of competition out of the market. Unfair business practice at its worst.

  5.9.2011 13:43 #21

• LordRuss

  Originally posted by ROMaster2: Big Government - 1... Free Market - 0 Go pound sand... It's not free market when a corporation is acting like a socialist nation unto itself, charging its customers what it wants & not being held responsible. If you actually attended a history class, this company was part of "Ma Bell" back in the day, when it charged in as an attempt to become the biggest communication monopoly. Had it not been for our big bad government they would have continued to fleece the nation & wrapped funds into other forms of mass communications. TV, satellite, digital everything ect.. Luckily the FCC was the first to put a stop to it. Now the DOJ is picking up the ball.
  
  I say there are other companies that need this kind of proverbial 'kick to the nuts' that AT&T is getting and not just the communications crowd.
  

  http://onlyinrussellsworld.blogspot.com

  5.9.2011 16:13 #22

• llongtheD

  Originally posted by hearme0: Originally posted by KillerBug: Originally posted by hearme0: Just as I predicted and stated over and over and over again. This ain't happening. US will not allow 20% of competition being eliminated. If it wasn't all over the news, it would have happened already. Even with media coverage, it is hard to think that the government might actually do the right thing...as far as I am concerned it is all just pandering until the law is being enforced. If AT&T has billions to spend on eliminating the competition in order to reduce quality and increase prices, just think how big those bribes must be. More than likely, this was filed by the one person in washington that AT&T forgot to bribe...and it will probably go away as soon as AT&T pays said bribe. Umm, you're incorrect and clearly a conspiracy theorist. Conspiracy theorists never are right.
  
  
  FYI....this isn't "one person" but the DOJ recognizing that removing T-Mobile is knocking 20% of competition out of the market. Unfair business practice at its worst.
  
  Open your eyes hearme0, its happening all the time. I hope the takeover is blocked as well, but with corporations now able to spend unlimited funds "lobbying" politicians, who knows? Your not one of those people that believes everything the government tells you, are you?
  

  If your fish seems sick, put it back in the water.

  5.9.2011 19:52 #23

• IguanaC64

  @Romaster2 - Companies can be every bit as big brother and anti-free market as a government can. Being a company doesnt make their tactics pro-free market/competition. It is incredibly expensive to build out your cellular infrastructure. Reducing the playing field by even one company that has their own infrastructure is one giant step away from free market competition.
  
  I think one of the big reasons its going to be hard to get this through is because it will eliminate a lot of shared jobs between the two companies. Consolidation of storefronts, administrative personnel, technical departments, etc. Doing this will only hurt jobs and we dont need that right now.

  6.9.2011 17:48 #24