Washington: 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.