DOJ SOUR ON T-MOBILE-SPRINT MERGER:
The Justice Department’s career staff is recommending that it files a lawsuit to block the $26 billion T-Mobile-Sprint merger, according to a Reuters report.
The final decision of whether to stop the combination of the two telecom giants lies with Assistant Attorney General Makan Delrahim, the head of the Antitrust Division.
Two unnamed sources told Reuters they expect a decision to be made within a month.
The news comes two days after the Republican-controlled Federal Communications Commission (FCC) said it would approve the merger after the two companies promised to expand coverage in rural areas, not raise prices for three years and build out a competitive 5G network.
It has been reported for months that the Justice Department, which also needs to sign off on the deal, has been concerned about combining two of the nation’s four national telecom providers and its potential to lead to higher prices and less competition.
A Justice Department spokesman declined to comment.
Potential Trump administration split?: FCC Chairman Ajit Pai said earlier this week that the companies’ commitments to expand rural connectivity and to build out a large next-generation 5G wireless network satisfied any concerns he might have had about further consolidating the industry.