T-Mobile/Sprint merger faces big trouble at DOJ despite FCC approval

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T-Mobile CEO John Legere and Sprint CEO Marcelo Claure speak during an interview.

Enlarge / T-Mobile CEO John Legere (left) and then-Sprint CEO Marcelo Claure during an interview on the floor of the New York Stock Exchange on April 30, 2018. (credit: Getty Images | Bloomberg)

The Department of Justice’s antitrust staff has recommended blocking T-Mobile’s attempted purchase of Sprint, Reuters reported today, citing an anonymous source.

DOJ staff “fear that after the deal T-Mobile will no longer aggressively seek to cut prices and improve service to woo customers away from market leaders Verizon and AT&T,” Reuters wrote. A final decision is expected to come in about a month.

To block the merger, the DOJ would have to sue in federal court and convince a judge that the merger violates antitrust law. DOJ staff recommendations can influence agency decisions on whether to file antitrust lawsuits, but they aren’t automatically followed. The DOJ’s decision will be made by antitrust chief Makan Delrahim, a Trump appointee.

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