On June 11, ten states filed an antitrust suit to block the proposed Sprint (S) and T-Mobile (TMUS) merger. The lawsuit alleges that the deal could harm competition and raise costs for consumers. It’s believed that the US Department of Justice is nearing a final decision, while the companies won approval for their deal from the FCC (Federal Communications Commission) last month.
According to a Reuters report on June 13, “Judge Victor Marrero of U.S. District Court for the Southern District of New York set the hearing for June 21, in response to a request for an expedited hearing.”
History of the T-Mobile and Sprint merger
In April 2018, Sprint agreed to merge with T-Mobile for $59 billion (including debt). This deal marks the third time the two US wireless service providers have attempted the combination. One of the reasons their merger talks collapsed in 2017 was the tug-of-war over the ownership of the combined company. Before that, the first round of merger talks in 2014 ended due to antitrust concerns.