Today, ten states announced that they are challenging the proposed merger of T-Mobile and Sprint over concerns that the transaction would reduce competition in the wireless sector. T-Mobile and Sprint are the third and fourth largest cell phone companies in America. The Center for Democracy & Technology (CDT) supports this action and is hopeful the Department of Justice will come to a similar conclusion.
“Blocking this transaction is the right move for American consumers. There is a ton of innovation in the mobile space that can only continue if we have vibrantly competitive wireless networks. This competition will be essential in building the next generation of mobile technology that can assist in bridging our country’s digital divide,” said Avery Gardiner, CDT’s Senior Fellow for Competition, Data & Power.
She continued, “This industry is already highly concentrated, with only four network providers. Letting it consolidate to three providers would go against antitrust principles that have been developed over decades of merger reviews. Today the states picked up the antitrust mantle and took action to protect competition and consumers.”
The Department of Justice has not announced whether it will also challenge the transaction. The FCC has indicated that it approves of the transaction.