Attorneys General File Lawsuit to Block T-Mobile/Sprint Merger

June 13, 2019 by Elin Johnson

WASHINGTON – The Attorneys General from ten states including New York and California filed a lawsuit this week to stop the proposed merger between telecommunications companies T-Mobile and Sprint.

In a federal complaint filed in New York on Tuesday, the attorneys general allege any merger between two of the four largest mobile service providers in the nation would drive up the cost of cellphone services and deny consumers of competition in the market.

T-Mobile and Sprint had hoped to have their merger approved by July. Now those approvals will likely be significantly delayed.

“When it comes to corporate power, bigger isn’t always better,” said New York Attorney General Letitia James, whose office is taking the lead in the litigation.

“The T-Mobile and Sprint merger would not only cause irreparable harm to mobile subscribers nationwide by cutting access to affordable, reliable wireless service for millions of Americans, but would particularly affect lower-income and minority communities here in New York and in urban areas across the country,” she said.

James went on to call the proposed hookup between the two mobile service providers “the sort of consumer-harming, job-killing megamerger our antitrust laws were designed to prevent.”

California Attorney General Xavier Becerra added that while T-Mobile and Sprint are promising faster, better, and cheaper service for their customers with this merger, “the evidence weighs against it.”

In addition to New York and California, the other states that have joined the lawsuit are Colorado, Connecticut, the District of Columbia, Maryland, Michigan, Mississippi, Virginia, and Wisconsin. All of the attorneys general involved are Democrats.

The two companies have been the subject of merger rumor since at least 2014, when Sprint floated a reported $20 billion bid to buy T-Mobile. That bid went nowhere, but talks resumed briefly last year, ending last November without a deal. Then in April, The Wall Street Journal reported that the two companies were once again back at the negotiating table.

Both companies have since framed discussions of the deal around the notion that it will pave the way for the U.S. to expand its 5G network.

They’ve said their goals were to bring high-speed internet access to rural areas, and to invest in 5G technology.

But the attorneys general contend T-Mobile has yet to produce any plans to put new cell towers in rural areas not already served by either company.

The attorneys general also argue this deal would cost customers of T-Mobile and Sprint around $4.5 billion each year.

The average cost of mobile services has fallen over the last decade by about 28 percent, according to the U.S. Labor Department. The consumption of mobile data has risen rapidly. On average, a typical U.S. household spends $1,100 on cell phone services each year.

The big four service providers are Verizon, AT&T, T-Mobile and Sprint, with T-Mobile and Sprint taking up the third and fourth spot, respectively. T-Mobile has 79 million subscribers while Sprint has 54 million.

Litigation

Trump Asks Supreme Court to Bar Release of His Tax Returns Law
Trump Asks Supreme Court to Bar Release of His Tax Returns
November 15, 2019
by Dan McCue

WASHINGTON - President Donald Trump asked the Supreme Court on Thursday to bar his accounting firm from turning over eight years of his tax returns to prosecutors in New York. The case has significance far beyond Trump as it could determined the scope of presidential immunity... Read More

Trump Not Immune From Manhattan DA’s Demand for Tax Returns, Federal Appeals Court Rules Law
Trump Not Immune From Manhattan DA’s Demand for Tax Returns, Federal Appeals Court Rules

NEW YORK — President Donald Trump is not entitled to Oval Office immunity that would block Manhattan District Attorney Cy Vance Jr. from obtaining copies of his tax returns, a federal appeals court ruled Monday. The 34-page ruling by the 2nd U.S. Circuit Court of Appeals... Read More

Supreme Court To Review SEC’s Right To Seek Disgorgement Supreme Court
Supreme Court To Review SEC’s Right To Seek Disgorgement
November 1, 2019
by Dan McCue

WASHINGTON - The Supreme Court agreed Friday to hear a case challenging the U.S. Securities and Exchange Commission’s authority to seek disgorgement in fraud cases. Last year federal regulators recouped $2.5 billion in ill-gotten proceeds from securities fraud. But on Friday the justices said they will... Read More

Georgia Supreme Court Upholds Election Despite Alleged Missing Votes State News
Georgia Supreme Court Upholds Election Despite Alleged Missing Votes

ATLANTA — The Georgia Supreme Court ruled Thursday that there wasn’t enough evidence to further dispute last year’s election for lieutenant governor, which had inexplicably low vote totals. An election can’t be overturned based solely on unusual vote counts in the lieutenant governor’s race — tens... Read More

Connecticut Court Rules Against Husband in Frozen-Embryo Divorce Case In The News
Connecticut Court Rules Against Husband in Frozen-Embryo Divorce Case

HARTFORD, Conn. — The Connecticut Supreme Court sidestepped the question of when life begins Wednesday when it ruled in a divorce case that previously frozen embryos a couple had created during their marriage are marital property and can be destroyed over the husband’s objection. The court... Read More

Ohio Supreme Court Again Refuses to Hear Appeal of Abortion Clinic Closure State News
Ohio Supreme Court Again Refuses to Hear Appeal of Abortion Clinic Closure

COLUMBUS, Ohio — The Ohio Supreme Court has declined to reconsider its decision rejecting an appeal from a Dayton-area abortion clinic ordered closed by state health officials. The justices voted 4-3 on Aug. 21 not to review the case, with Chief Justice Maureen O’Connor, a Republican,... Read More

Straight From The Well
scroll top