Attorneys General Support Attorney General James' Multi-State Lawsuit To Block T-Mobile And Sprint Megamerger

Attorneys General Support Attorney General James’ Multi-State Lawsuit to Block T-Mobile and Sprint Megamerger

NEW YORK–  Following the filing of a lawsuit yesterday by Attorney General Letitia James and nine other Attorneys General to halt the proposed merger of telecom giants T-Mobile and Sprint, the Attorneys General of California, Connecticut, the District of Columbia, Maryland, Michigan, Mississippi, Virginia, and Wisconsin — all co-plaintiffs in the action — issued the following statements:

“Although T-Mobile and Sprint may be promising faster, better, and cheaper service with this merger, the evidence weighs against it,” said California Attorney General Becerra. “This merger would hurt the most vulnerable Californians and result in a compressed market with fewer choices and higher prices. Along with New York and eight other partner states, we’ve filed a lawsuit to block this merger and protect the residents of our state.”

"Competition in the wireless industry has caused prices to drop and coverage and quality to improve. But the average American household still spends over $1,000 a year on wireless service — way too much,” said Connecticut Attorney General William Tong. “Cell phones are not a luxury or convenience, they are a necessity of modern life for every Connecticut family. We need more competition in the market, not less. Federal antitrust law prohibits mergers that substantially lessen competition, and this proposed merger should be blocked."

“This anticompetitive merger will harm every District resident with a cell phone plan, especially our lower-income consumers, for whom even a small price increase can mean not having cell service at all,” said District of Columbia Attorney General Karl A. Racine. “If this merger is allowed to go through, it will lead to higher prices and lower quality wireless service across the board for all District consumers, not just those who use Sprint or T-Mobile.”

“The merger of two of the country’s largest cell phone carriers is dangerous for consumers,” said Maryland Attorney General Brian E. Frosh. “Reduced competition in a market that only has four major competitors right now will result in higher prices and fewer options for Marylanders. Millions of Americans depend upon cell phones to stay in touch with family, conduct business, access email and the Internet, and to make emergency 911 calls. American consumers deserve more competition, not less.”

“We cannot sit idly by while two of the biggest companies in the country attempt to join forces, eliminating competition between Sprint and T-Mobile and likely raising prices,” said Michigan Attorney General Dana Nessel. “As the eighth largest mobile wireless consumer market in the United States, we must protect Michigan residents — and every cell phone customer in the country — from a move by corporate players that will enrich their shareholders on the backs of their customers.”

“We’re trying to stop this merger because Mississippi customers would not benefit from the merger, but it would likely increase prices in the long run for them,” said Mississippi Attorney General Jim Hood. “Competition creates a healthy market, and a merger like this one would reduce options for consumers.”

“Mobile phones have, in many ways, become a necessity for people who are looking for a job, pursuing their education, or even just trying to coordinate hectic schedules amongst their family,” said Virginia Attorney General Mark R. Herring. “The cost of mobile phone service has actually dropped significantly in recent years, but this proposed merger would likely lead to increased costs, fewer choices, and less innovation in the market. For many families on a tight budget, a small increase in the cost of their phone plan could be incredibly disruptive and difficult to absorb. We’re going to do what we can to protect Virginians and keep phone bills low.”

“Maintaining strong competition helps keep prices low,” said Wisconsin Attorney General Josh Kaul. “If this proposed merger happens, many Wisconsinites will see increased prices for their cell-phone plans.”