Sprint files against AT&T merger

Phone company Sprint filed a lawsuit against the proposed merger between AT&T and T-Mobile, which comes on the heels of a similar suit by the federal Department of Justice last week.

The lawsuit alleges that the takeover of T-Mobile by AT&T would harm all mobile phone customers by reducing competition, raising prices and stifling innovation. AT&T plans to buy the Deutsh Telecom company for $39 million to expand and improve the company’s network, the company says.

“With today’s legal action, we are continuing that advocacy on behalf of consumers and competition, and expect to contribute our expertise and resources in proving that the proposed transaction is illegal,” Sprint said in a statement.

The DOJ filed its antitrust case against AT&T five months after the initial proposal. President Obama’s administration has said that the merging of the second- and fourth-largest phone companies would be a blow to consumers.

This action by the government came a surprise to both AT&T and Deutsh Telecom, representatives from both companies have stated. But, the DOJ has said it is open to negotiation in the coming stages of the antitrust investigation.

Sprint is the third-largest mobile phone company in the United States and Verizon currently sits at number one.