States Are Trying To Block The T-Mobile And Sprint Merger
In total, 13 states and the District of Columbia are using their attorneys general to sue the two companies. The merger is valued at $26 billion. Additionally, T-Mobile and Sprint are respectively the third and fourth largest wireless carriers in the country. Their size is determined by the number of cellphone subscribers that each company has.
If the two companies were able to successfully circumvent any challenge to the merger then it would set the precedent for future large-scale mergers. Some have said that the joint effort between states to block the merger, particularly without the help of the federal government, is in itself unprecedented.
Opening arguments from both sides were scheduled to be delivered on Monday. The trial is taking place in New York and is being presided by Judge Victor Marrer. There have been efforts to reach a settlement before the start of trial. However, sufficient progress has not been made on that front.
The announcement of the planned merger occurred in April 2018. There was an initial effort to merge the two companies in 2014, but Sprint pulled out because of stronger antitrust regulation during Obama’s time as president.