Sprint takeover of T-Mobile may hit regulatory wall
A report from Stifel Financial revealed that a U.S. Justice Department official has hinted that at least some in the department have grave doubts about the proposed Softbank/Sprint takeover of T-Mobile.
According to Stifel, Renata Hesse, deputy assistant attorney general for criminal and civil operations at DOJ’s Antitrust Division, praised innovation at a Stanford University technology conference. Ms. Hesse said, “While competitive prices are – and will remain – a key objective, the division fully appreciates the importance of innovation. “Innovation can dramatically improve consumer welfare by motivating the introduction of extraordinary new products.”
Moreover, she said that some proposed mergers would “likely would harm competition by reducing innovation.” And, “The [DOJ] often finds compelling evidence – including internal company documents – establishing that pre-merger competition between the merger firms was an important driver of innovation,” she said.
Renata Hesse’s remarks echo a DOJ filing in 2013 which said that the department, “believes it is essential to maintain vigilance against any lessening of the intensity of competitive market forces.”
Speed Matters urges the Justice Department to halt the merger, finding it harmful to consumers, to workers, and to competition and innovation.
DOJ Official’s Focus on Innovation Highlights a Key Hurdle for Sprint/T-Mo (Stifel Financial report, Jan. 23, 2014)
At the Intersection of Antitrust & High-Tech: Opportunities for Constructive Engagement (Renata Hesse, U.S. Dept. of Justice, Jan. 22, 2014)
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