15 U.S. States, headed by the Attorney General of New York and California, have filed a lawsuit against the merger saying it is anti-competitive and will raise costs by more than $4.5 billion annually for residents.
In a significant development, the state of Oregon joined a multistate lawsuit to block the merger of T-Mobile US Inc and Sprint Corp.
Fifteen U.S. states, along with the District of Columbia are seeking to stop this merger saying it is anti-competitive and will increase costs for residents by more than $4.5 billion, annually. The New York attorney general’s office is leading the charge along with California. Incidentally, Texas, whose attorney general is Republican, has also joined the coalition against this merger.
“Oregon’s addition to our lawsuit keeps our momentum going, and ensures that there isn’t a single region of this country that doesn’t oppose this anti-competitive megamerger,” said New York Attorney General Letitia James in a statement.
Earlier this month, a U.S. District Court in Manhattan had passed an order for the trial to be delayed to December 9, since the states needed more time to investigate the merger.
“If left unchallenged, the current plan will result in reduced access to affordable wireless service in Oregon — and higher prices,” said Oregon Attorney General Ellen Rosenblum. “Neither is acceptable.”
Last month, the U.S. Justice Department gave a thumbs on the deal subject to certain conditions which includes that the carriers divest Sprint’s prepaid phone business to satellite TV provider Dish Network Corp to create a fourth U.S. wireless carrier.
T-Mobile has said it does not intend to close the merger while the states’ litigation is ongoing.