Justice Ministry Could Kill T-Mobile / Sprint Merger Despite Probable FCC Approval



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T-Mobile and Sprint started the day with very good news when FCC President Ajit Pai urged the Commission to approve their merger, which will transform the industry. Both companies' stocks skyrocketed shortly thereafter. But only a few hours later, Bloomberg reports that the United States Department of Justice is inclined to block the merger for antitrust reasons. This is not the first time we hear that the Justice Department is not convinced that combining T-Mobile and Sprint would be a positive development for consumers.

Citing a person familiar with the ongoing review of the DoJ merger, Bloomberg states that "the solutions proposed by companies do not go far enough to solve antitrust problems". T-Mobile and Sprint have agreed on several "binding" commitments and milestones on the deployment of 5G across the United States to get the FCC's green light on the deal; Boost Mobile will also be sold if the merger succeeds. In a video, John Legere, CEO of T-Mobile, insisted that the merged company would face heavy financial penalties if it did not achieve these 5G development goals. He also promised again that consumers would not face higher prices for mobile phone plans for at least three years.

But the Department of Justice's antitrust division is the key hurdle – and bigger than the FCC in this case – that T-Mobile and Sprint need to overcome if they want to complete the $ 26.5 billion merger of dollars. The same conditions that Pai deemed acceptable may not be sufficient to obtain antitrust approval. The trading of Sprint shares was briefly halted for volatility on Monday afternoon after Bloomberg the story has been published.

T-Mobile and Sprint believe their merger is essential for the United States to be a leader in 5G mobile networks and present a more formidable competitor to their larger rivals, Verizon Wireless and AT & T. Critics maintain that the Reducing the number of major US mobile phone providers from four to three will result in higher prices and job losses, whatever the promises of T-Mobile and Sprint. When The Wall Street Journal Previously reported that the Department of Justice turned against the merger, the leaders of Legere and Sprint, Marcelo Claure, firmly rejected the story by saying that it was inaccurate. But now Bloomberg is corroborating that this thing is still a long way from being a certainty.

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