A U.S. judge has ruled that Sprint and C Spire Wireless can pursue part of their antitrust lawsuit against AT&T Inc's proposed $39 billion acquisition of T-Mobile USA. Though the judge dismissed large parts of the suit, U.S. District Judge Ellen Huvelle agreed to allow the competitors to pursue their injury claims about the effect the deal would have on the market for wireless devices.
AT&T and T-Mobile, a unit of Deutsche Telekom AG , had sought to dismiss the lawsuit, but U.S. District Judge Ellen Huvelle agreed to allow the competitors to pursue their injury claims about the effect the deal would have on the market for wireless devices.
The decision may complicate matters for AT&T and T-Mobile USA because they will now have to simultaneously fight the government's attempt to block the deal and argue against claims by the two competitors. Sprint suit against AT&T/T-Mobile deal
Though the outcome remains in doubt, some observers might argue that the fearsome, well-oiled AT&T regulatory affairs team has had an unexpectedly difficult time making the argument in favor of the acquisition.
Some might argue that this indicates not some sudden loss of effectiveness on the part of AT&T's persuasion machine, but merely that the case is a tough one to present.
Perhaps most difficult in that regard is the argument that there is a spectrum shortage that will be alleviated, in substantial ways, if the acquisition moves forward. Others have pointed out that it would cost less for AT&T simply to light up spectrum it already owns, for example.
The other problem, from an antitrust perspective, is that market concentration in the U.S. mobile industry already exceeds the normal tests antitrust attorneys normally use to determine the extent of market concentration. HHI index
Friday, November 4, 2011
Judge allows Sprint suit against AT&T/T-Mobile deal
Labels:
acquisition,
antitrust,
att
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
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