Sprint Sues To Block AT&T’s Purchase Of T-Mobile
September 7, 2011 by staff
Sprint Sues To Block AT&T’s Purchase Of T-Mobile, San Francisco – USA Mobile phone carrier Sprint filed a lawsuit Tuesday to block a proposal from & T $ 39 million, buying T-Mobile, claiming the deal could harm consumers by creating a duopoly that controls 90 percent of the profits generated by wireless service providers in the United States.
The lawsuit, filed in federal court in Washington DC, came a week after the U.S. Justice Department announced that it would take legal action to block the deal, citing antitrust concerns.
“Sprint is opposed to proposed acquisition of AT & T T-Mobile,” said Susan Haller, president of Sprint’s vice president of litigation, in a statement.
“With today’s legal action, we continue that advocacy on behalf of consumers and competition, and we hope to contribute our expertise and resources to prove that the proposed transaction is illegal.”
The proposed agreement would combine the second and fourth mobile phone companies to bypass the first place to Verizon as the largest company in mobile phones in the U.S. Sprint, the largest company in third place, said the alliance “harm consumers by retailers and customers to higher prices and less innovation.”
Sprint said the alliance would give AT & T and Verizon unprecedented control over one U.S. dollars 250 billion a year industry, which control more than three quarters of this market and 90 percent of the profits.
AT & T and T-Mobile have said they intend to fight the government’s complaint and that the deal would benefit consumers with lower prices and better networks.
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