The United States government has filed a lawsuit in an attempt to block AT&T’s proposed $39 billion acquisition of T-Mobile USA, saying that such a deal would “substantially lessen competition” in the U.S. wireless market. Bloomberg reports that the complaint was filed by the U.S. Justice Department on Wednesday, and the government is asking for a declaration that the proposed merger would violate U.S. antitrust laws. The complaint seeks to have the deal blocked as a result. “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 has argued that it needs T-Mobile’s spectrum in order to improve service quality and cover the majority of the U.S. population with 4G LTE service.

UPDATE: AT&T has issued a statement in response to the DOJ lawsuit. The FCC has issued a statement as well, as has Sprint.

Read

Zach Epstein has worked in and around ICT for more than a decade, first in marketing and business development with two private telcos, then as a writer and editor covering business news, consumer electronics and telecommunications. Zach’s work has been quoted by countless top news publications. He was also recently named one of the world's top-10 “power mobile influencers” by Forbes, as well as one of Inc. Magazine's top-30 Internet of Things experts.