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Govt moves to block ATT/T-Mobile merger

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WeDontNeedGod

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Here we go folks, more business being punished for being successful, efficient and productive:

NEW YORK (CNNMoney) -- The U.S. Department of Justice filed an antitrust lawsuit against AT&T on Wednesday seeking to block its $39 billion merger with T-Mobile.

The merger would create the largest wireless company in the United States, combining AT&T's 98 million customers with T-Mobile's 34 million users, for a total of 130 million subscribers. AT&T is currently the second-largest wireless company by number of subscribers, and T-Mobile is fourth.

The DOJ said the merger would lead to a situation in which just two companies -- the AT&T-T-Mobile combination and Verizon Wireless -- would dominate the mobile market. The new AT&T and Verizon would account for more than two-thirds of wireless subscribers and 78% of the wireless industry's revenues.

"We feel the combination of AT&T and T-Mobile would result in tens of millions of consumers across the U.S. facing higher prices, fewer choices, and lower quality products for wireless services," James Cole, deputy attorney general, said in a press conference Wednesday.

http://money.cnn.com/2011/08/31/technology/att_tmobile_antitrust/index.htm?hpt=hp_t1

There is NEVER a valid reason for governmental intervention in the economy itsefl! This is how the market works. LEAVE IT ALONE! They are not doing anything wrong at all in such a merger. This is just further persecution of the American Businessman. This is what a "productive monopoly" can look like, dominating the market due to it's own success, productivity in their businesses, unlike coercive monopolies that the government creates that effectively BARS ALL COMPETITION. That gives productive monopolies or those businesses companies that are dominant in the market a very bad name. They are there BECAUSE they are successful.

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The lawsuit sets up the most substantial antitrust battle since the election of President Obama, who campaigned with promises to revitalize the Justice Department’s policing of mergers and their effects on competition, which he said declined significantly under the Bush administration. AT&T said it would fight the lawsuit. “We plan to ask for an expedited hearing so the enormous benefits of this merger can be fully reviewed,” the company said in a statement. “The D.O.J. has the burden of proving alleged anti-competitive effects and we intend to vigorously contest this matter in court.”

Consumer advocacy groups cheered the announcement. “This announcement is something for consumers to celebrate,” said Parul P. Desai, policy counsel for Consumers Union. “We have consistently warned that eliminating T-Mobile as a low-cost option will raise prices, lower choices and turn the cellular market into a duopoly controlled by AT&T and Verizon.”

http://www.nytimes.com/2011/09/01/technology/us-moves-to-block-merger-between-att-and-t-mobile.html

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