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U.S. Government Files Antitrust Suit to Prevent AT&T's Acquisition of T-Mobile

Posted August 31, 2011 at 3:06pm by iClarified · 9034 views
The U.S. Government has filed an antitrust suit to prevent AT&T from purchasing T-Mobile, reports Bloomberg.

Saying that the $39 billion dollar acquisition would "substantially lessen competition" in the wireless market, the Justice Department filed suit in a Washington federal court. The U.S. is seeking a declaration that the takeover violates antitrust law and a court order preventing the deal.

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

AT&T has to pay T-Mobile $3 billion in cash, provide it with wireless spectrum in some regions, and reduce charges for calls into their network if the deal falls through.

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