The US Department of Justice has moved to block AT&T’s $39bn takeover of T-Mobile USA, threatening to unpick plans to unite the number two and number four US telecommunications operators in a deal that aimed to reshape the sector.
In a lawsuit filed on Wednesday, the DoJ said the takeover would “substantially lessen competition for mobile wireless telecommunications services ... resulting in higher prices, poorer quality services, fewer choices and fewer innovative products”.
The agency said T-Mobile played a valuable role as a scrappy, aggressive competitor and challenged AT&T’s assertion that the deal was needed to bulk out network capacity and expand the availability of broadband in the US.
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