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Even the Dept. of Justice Hates the Idea of an AT&T, T-Mobile Merger

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JUSTICE SERVED!
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In the five months since its announcement, I've yet to encounter a single person in favor of AT&T's acquisition of T-Mobile. That is, anyone outside the PR departments of either company.

Decreasing the number of major national carriers to three, the AT&T, T-Mobile merger would significantly diminish the competition amongst the most corrupt bunch of middlemen this side of the oil industry. If text messaging rates, data caps, and mysterious monthly charges weren't egregious now, just wait until you have fewer alternatives.

However, in a rare display of actual justice, the US Department of Justice has stepped in, attempting to block the merger from taking place. Bloomberg reports that the government has filed a complaint in federal court which claims the disastrous tech union would violate US antitrust law.

"AT&T's elimination of T-Mobile as an independent, low-priced rival would remove a significant competitive force from the market," the filing read.

Wow. How often is the US government on the same page as its populace?

AT&T shares took a nosedive following the report, falling over 4%, but that isn't the worst news. Should the merger fall through, AT&T has promised to pay T-Mobile a break-up fee -- which includes cash, spectrum, and roaming privileges -- worth between $6 billion and $7 billion.

Looks as if the telcom doesn't have as much political clout as we all thought.

(See also: AT&T, T-Mobile Merger Could Be Disastrous for Subscribers and AT&T Is Screwed if FCC Rejects T-Mobile Merger)

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POSITION:  No positions in stocks mentioned.

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