It seems that Sprint is not a big fan of the currently pending AT&T/T-Mobile merger, and has recently filed a lawsuit against AT&T, T-Mobile, and Deutsche Telekom, claiming that the buyout of T-Mobile is illegal.
According to the Washington Post, “Sprint’s recently filed suit claims that the potential AT&T/T-Mobile merger violates Section 7 of the Clayton Antitrust Act. Sprint alleges that if allowed, the merger would (among other things) raise prices, stifle innovation, further cement Verizon and AT&T’s power, and harm Sprint and other smaller carriers.”
AT&T claims that the $39 billion merger will help it provide more capacity, but it does not seem that anyone is convinced, customers nor the U.S. Department of Justice.
The U.S. Department of Justice also has sued AT&T claiming that “AT&T’s elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market.”
If AT&T is successful in its plan to obtain T-Mobile USA, $3 billion will be made out to Deutsche Telekom. If so, neither Sprint nor the U.S. Department of Justice will be too happy about AT&T’s purchase.