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Law
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Essay
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English (U.S.)
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Topic:
Antitrust Law and the Merging of AT&T With T-Mobile
Essay Instructions:
Review the AT&T Pulls $39 Billion T-Mobile Bid on Regulatory Opposition Links to an external site. article. (https://www(dot)deseret(dot)com/2011/12/19/20239279/at-t-pulls-39-billion-t-mobile-bid)
In 2011, AT&T attempted a merger with T-Mobile. The Justice Department sued under the act, claiming that the merger would constitute a violation of the antitrust laws. In 2012, AT&T dropped its attempt at the acquisition.
If AT&T had merged with T-Mobile, would the merger have violated antitrust laws? Why, or why not? Do not be unduly influenced by the Justice Department’s stance on the issue. Use your own analysis to reach a conclusion.
Essay Sample Content Preview:
Antitrust Law
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Antitrust Law
In my opinion, if AT&T had merged with T-Mobile, the merger would have violated the antitrust laws. In particular, antitrust entails regulating the concentration of economic power, such as anti-competitive practices and monopolies. Antitrust laws prohibit combinations, conspiracies, and contracts that can restrain foreign and interstate trade (The United States Department of Justice, 2022). They include competitors’ agreements to price fixing, engaging in unfair business practices, and rig bids. Violating antitrust laws is a criminal offense that is punishable by civil and criminal penalties.
The primary reason that AT&T's merger with T-Mobile would have violated the antitrust laws is that the former company would have attained 134.4 million subscribers to become one of the largest wireless carriers in the United States of America (USA). Indeed, its main competitor would have been Verizon Wireless, which has 107.7 million subscribers (Moritz, 2011). In my opinion, AT&T would have become a monopoly by acquiring large economic power, which might lead to unf...
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