AT&T’s proposed $39 billion takeover of T-Mobile hit a major snag on Wednesday when the U.S. Justice Department 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.” (For the full complaint, see below.) Reps from AT&T and T-Mobile could not be reached for comment.
AT&T announced the proposed takeover in March. AT&T’s stock price was down 5% this morning after the news broke.