The US administration has asked the antitrust authority to block the merger between AT&T and T-Mobile, the American subsidiary of Deutsche Telekom. In fact, the Justice Department filed a lawsuit this morning to block the acquisition, just as AT&T was ready to invest a record $39 billion for life in the largest cell phone group in the United States. If the deal goes through, three companies would have 90% of the US cell phone market.
"We think the combination would lead to higher prices and lower service for tens of millions of consumers - explained James Cole, Deputy Minister of Justice - We therefore want to block the operation to maintain a vibrant and competitive market". At&T shares reacted to the news by posting a 4% loss on Wall Street while its main competitor, Sprinti Nextel, jumped 9% immediately following the announcement.
