Washington, D.C. – Days after the Department of Justice filed suit to block AT&T’s proposed $39 billion acquisition of T-Mobile, rival wireless carrier Sprint Nextel on Tuesday launched a court battle of its own. Sprint Nextel, which has offices in Reston, filed suit in DC federal court, claiming a violation of Section 7 of the Clayton Act, which prohibits anticompetitive practices.
Sprint Nextel, the nation’s third-largest wireless carrier, would stand to lose market share if No. 2 AT&T and No. 4 T-Mobile were to combine.
“With today’s legal action…[we] expect to contribute our expertise and resources in proving that the proposed transaction is illegal,” said Susan Haller, Sprint’s vice president of litigation. The DOJ filed its own suit in DC to block the merger one week ago. The agency said the acquisition would result in “higher prices, poorer quality services, fewer choices and fewer innovative products.”
This article was also published in Potomac Tech Wire.
Press release – http://tinyurl.com/3mp8mkf