DoJ Files Complaint on AT&T's (T) Bid for T-Mobile, Looking to Block Deal

AT&T (NYSE: T) shares plummeted midday Wednesday after the U.S. Department of Justice filed a complaint seeking to stop AT&T's proposed takeover of T-Mobile.

The DoJ alleges AT&T's acquisition of T-Mobile would substantially lessen competition in interstate trade and commerce in relevant mobile markets and enterprise and government mobile wireless telecommunications services in violation of Section 7 of the Clayton Act, 15 USC subsection 18 (which deals with acquisition by one corporation of stock of another).

A brief summary of the fallout from the merger, according to the filing:

• actual and potential competition between AT&T and T-Mobile will be eliminated;
  
  
• competition in general will be lessened substantially;
  
  
• prices are likely to be higher than they otherwise would;
  
  
• the quality and quantity of services are likely to be less than they otherwise would due to reduced incentives to invest in capacity and technology improvements; and
  
  
• innovation and product variety likely will be reduced

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