Dr Dave's unique perspective on our culture, politics, business, history and economics.

The Best of Dr Dave's Weekly Radio Show

Click here to listen to Archive shows

Wednesday, August 31, 2011

DOJ Sues to Block AT&T/T-Mobile Merger

Justice Department Files Antitrust Lawsuit to Block AT&T’s Acquisition of T-Mobile

The DOJ is suing to stop the AT&T acquisition of T-Mobile. AT&T and T-Mobile have been running ads promoting their positions on the merger and the advantages to mobile customers of both companies. AT&T customers in particular will benefit from T-Mobile's excess system capacity. T-Mobile will benefit by receiving value for that capacity.

I don't think AT&T has any chance to win this dispute. During the historic DOJ v Microsoft dispute, I interviewed a DOJ representative and was told the primary criteria for pursuit of an anti-trust case was the numbers. The number of competitors in a market before the proposed change and the number afterwards. If the change reduced the number of competitors, then a lawsuit would be pursued. Period.

I guess AT&T and T-Mobile made the same mistake Gibson Guitars did - not enough campaign contributions to the appropriate people and not enough support for Unions. At least they haven't been raided - yet.
blog comments powered by Disqus