Case Description
States challenged merger of T-Mobile and Sprint, the third and fourth-largest mobile telecommunications providers in the U.S., alleging that shrinking the national wireless carrier pool down from four to three providers would decrease competition and create higher prices for consumers. The US Department of Justice and seven states entered into a settlement with the parties under which they would sell Sprint’s prepaid business and some wireless spectrum to Dish Network to form an additional competitor. After trial, the court allowed the merger to go forward, concluding that it was not reasonably likely to substantially lessen competition in the mobile service market and would likely “enhance competition in the relevant markets to the benefit of all consumers.” The plaintiff states then reached a settlement with the merging parties under which the parties would make low-cost plans available for at least 5 years, extend for at least an additional two years the rate plans offered by T-Mobile and reimburse the states up to $15 million for the costs of the investigation and litigation challenging the merger.