WASHINGTON, D.C. – AT&T’s $39 billion plan to buy T-Mobile USA has been blocked by the U.S. Justice Department after it voiced concerns that combining the two wireless giants could halt competition and innovation.
The agency filed a civil antitrust lawsuit Wednesday morning in federal court in Washington. According to a Bloomberg report, Dallas-based AT&T expressed surprise and vowed to “vigorously contest this matter in court”.
The deal, first announced in March, had sparked protests from competitors, industry stakeholders and consumer groups. In a statement emailed to Cartt.ca, Dish Network said that it was “pleased” that the Department of Justice moved to thwart the proposed merger.
“As stated in our filings with the FCC, a combined AT&T/T-Mobile would harm consumers by reducing competition and by raising barriers to entry for potential new entrants like Dish Network”, the statement reads. “Dish Network believes its own efforts in seeking to enter the wireless broadband market will drive job creation and further stimulate competition and innovation."
