Case Details

Year Initiated/Committed

2004

Year Resolved

2004

Court

U.S. District Court for the District of Columbia

Lead State

CT, TX

Participating States

CT, TX

Defendant(s)

Cingular Wireless Corp., SBC Communications Inc., Bellsouth Corp. and AT&T Wireless Services, Inc.

Case Description

U.S. Department of Justice and Plaintiff States sought to enjoin the acquisition of AT&T Wireless by Cingular Wireless, alleging that the proposed acquisition would increase the likelihood of unilateral actions by the merged firms to increase prices, diminish quality or quantity of services provided, refrain from or delay making investments in network improvements, and refrain from or delay launching new services. In order to proceed with the acquisition of AT&T Wireless and prevent the relevant geographic markets from becoming substantially more concentrated by the merger and therefore lessening competition, the parties agreed to settlement terms in which Cingular Wireless and AT&T Wireless agreed to divest certain assets in eleven states. Under separate better agreements, Defendants paid $35,000 collectively to Texas and Connecticut for attorney fees and costs.