Just recently in this year, AT&T had announced to buy T-Mobile at a whopping price of $39 Billion. This news was met with some disappointment from the US nation, as the T-Mobile company has been famous in the USA for keeping its prices low.
But this announcement was met by a surprising move by the US Government which has filed a complaint against this T-Mobile merging into AT&T in the federal court. This move proves that the US government is fearing this merging as being anti-competitive, as are the other consumer rights groups and technology enthusiasts. Doj explains this merging as:-
“The combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower quality products for mobile wireless services,”
This complaint filed by the US government states that,
- This merging would be an anti-trust violation.
- It would also finish off the competition between the other technology companies.
- The lack of competitors could reduce the pressure for all carriers to keep their prices low in a world were bandwidth is becoming increasingly competitive.
Now many personalities related to the technology business have expressed their views in support of this complaint. Julius Genachowski, the Chairman of the FCC, the organization responsible for regulating all the communications services in the United States stated that,
By filing suit today, the Department of Justice has concluded that AT&T’s acquisition of T-Mobile would substantially lessen competition in violation of the antitrust laws. Competition is an essential component of the FCC’s statutory public interest analysis, and although our process is not complete, the record before this agency also raises serious concerns about the impact of the proposed transaction on competition. Vibrant competition in wireless services is vital to innovation, investment, economic growth and job creation, and to drive our global leadership in mobile. Competition fosters consumer benefits, including more choices, better service and lower prices.”
Nobody from the T-Mobile was available for comment. But the AT&T finally responded with an accordingly pre-planned answer to this move:-
We are surprised and disappointed by today’s action, particularly since we have met repeatedly with the Department of Justice and there was no indication from the DOJ that this action was being contemplated. We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed. The DOJ has the burden of proving alleged anti-competitive affects and we intend to vigorously contest this matter in court. We remain confident that this merger is in the best interest of consumers and our country, and the facts will prevail in court.
Now we just have to see if this complaint is strong enough to battle against the number 1 communication company in the USA, AT&T. Though we hope that the AT&T decides against this action to continue the competition between the tech companies because, as Julius Genachowski rightfully said,
Competition fosters consumer benefits, including more choices, better service and lower prices.”