Seven states are banding together to prevent the merge between wireless carriers AT&T and T-Mobile. California, Illinois, Massachusetts, New York, Ohio, Pennsylvania, and Washington along with the U.S. Justice Department all believe this deal would do more harm than good. The government already expressed its concern in a recent lawsuit that took AT&T by surprise.
In a statement, the U.S. Justice Department explained its reasoning:
“We have had an excellent working relationship with a number of state attorneys general and they have provided invaluable assistance throughout our investigation. We are pleased that these states have joined the department in its lawsuit.”
While this wouldn’t be a total monopoly since there are other options available for wireless service, the Justice Department is certain this would raise wireless prices.
You know who else isn’t too happy about the situation? Sprint. Shortly after the $39 billion deal was announced, the carrier said it would ‘stifle’ innovation. Then in September after months of silence, Sprint jumped back in with a lawsuit, claiming the merger would kill jobs. Technically this is true, since it’s highly unlikely AT&T will be taking in all of T-Mobile’s employees. I’m sure Sprint is really just afraid, but they have every right to be. On the flip side, Verizon has been oddly quiet.