Back in March AT&T shook the mobile industry in America to its core by proposing a $39-billion acquisition of major competitor T-Mobile.
But as we noted, the deal could take up to a year to close and would require regulatory and shareholder approvals.
Five months later, the companies have hit a major snag: the U.S. Justice Department has filed to block the merger.
The Justice Department is arguing that the takeover would violate antitrust laws and “would substantially lessen competition for mobile wireless telecommunications services across the United States, resulting in higher prices, poorer quality services, fewer choices and fewer innovative products for the millions of American consumers who rely on mobile wireless services in their everyday lives.”
AT&T says it will “vigorously contest this matter in court.” Its stock price is down 5% on the news.