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Antitrust Law Review the “AT&T Pulls $39 Billion T-Mobile Bid on Regulatory Opposition(Links to an external site.)Links to an external site." article. In 2011, AT&T attempted a merger with T-Mobile....

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Antitrust Law

Review the “AT&T Pulls $39 Billion T-Mobile Bid on Regulatory Opposition(Links to an external site.)Links to an external site." article.

In 2011, AT&T attempted a merger with T-Mobile. The Justice Department sued under the act, claiming that the merger would constitute a violation of the antitrust laws. In 2012, AT&T dropped its attempt at the acquisition.

If AT&T had merged with T-Mobile, would the merger have violated antitrust laws? Why, or why not? Do not be unduly influenced by the Justice Department’s stance on the issue. Use your own analysis to reach a conclusion.

Answered Same Day Feb 18, 2021

Solution

Kuldeep answered on Feb 19 2021
142 Votes
AT&T and T-Mobile merge
AT&T attempted a merger with T-Mobile
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In the year 2011 AT&T is one of the second largest wireless service providers in the U.S. and wanted to combine or merge with the fourth largest wireless service provider of the U.S which is T-Mobile. This deal would have simply added 33.7 million customers of T-Mobile's to 100.7 million subscribers of AT&T's, surpassing the Verizon Wirelesses approximately 107.7 million” (Moritz, 2011).
CEO of AT&T Randall Stephenson states that when this deal was announced, he was very confident about receiving regulatory or legal clearance. Randall Stephenson said the merger would help the company to improve its services, speed up its investment in fast networks moreover drive the expansion of wireless in the rural areas.
Critics of this deal said that it would reduce an aggressive cost competitor, increasing subscription costs or prices. Wireless plans of T-Mobile's are approximately $20 to $45 cheaper as compared to AT&T plans, as per the analysis of Consumer Reports.
If there is a merger of T-Mobile and AT&T back in the year 2012 the approval would have violated several antitrust...
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