US government filed to block AT&T acquirement of T-Mobile.

AT &T and T-MobileWashington: Obama administration on Wednesday filed to block AT&T’s proposed acquirement of wireless rival T-Mobile USA as of anti-competitive issues, two sources accustomed to the matter, official said.

In the complaint filed today in federal court in Washington, US is seeking a declaration that Dallas-based AT&T’s takeover of T-Mobile, a unit of Deutsche Telekom AG (DTE), would violate US antitrust law. US also asked for a court order blocking any agreement implementing the deal.

The U.S. said in its filing that “AT&T’s elimination of T-Mobile as an independent, low- priced rival would remove a significant competitive force from the market.”

A Justice Department spokeswoman declined to comment as did a spokesman for AT&T. A Federal Communications Commission spokesperson said that the commission has not made a decision to block the deal.

The deal would substantially reduce competition in the wireless market. AT&T shares fell as much as 5 percent.

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