Ten US states join Justice Dep. to stop Sprint-T-Mobile deal

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Ten US states join Justice Dep. to stop Sprint-T-Mobile deal

On Tuesday, the 11th of June 2019, ten US states led by the attorney generals of New York and California had filed a lawsuit against T-Mobile-Sprint $26 billion merger deal, saying that consumers would be hurt because of reduced competition.

In point of fact, if the merger had been brought into light, it would eventually lead to lift off consumers’ prices, as the merger would deplete numbers of US wireless carrier to three from prior four alongside, the latest merger would be the third-largest US wireless carrier, behind Verizon Communications and AT&T.

Despite a number of protests across United States against the merger deal that would reduce competition, and perhaps lead to higher price for pre-paid customers, last week, the US FTC had voted three to two to pass the deal through US Federal Commission, however, the deal would still require an endorsement of US Justice Department, which repeatedly recommended to block the deal.

Nonetheless, the complaints came forth, as the US Justice Department had been closing in to make a final decision over the merger. Besides, 10 democratic attorney generals from Colorado, Connecticut, Columbia, Maryland, Virginia, Mississippi and Wisconsin had said the reduced competition resulted from the merger would cost T-Mobile and Sprint customers $4.5 billion annually.

Adding that the merger could not guarantee a better coverage at an affordable price for certain communities residing below poverty line, New York Attorney General, Letitia James said a press conference on Tuesday (June 11th), “When it comes to corporate power, bigger is not always better. To many upstate New Yorkers, (the carriers) still struggle with 3G”.