FCC Moves to Block AT&T Merger
FCC Chairman Julius Genachowski has taken a first step in blocking the $39 Billion merger between AT&T and T-Mobile on Tuesday. Genachowski called for an administrative hearing to review the terms of the merger.
The call for review came after FCC staff reported that the deal would harm consumers, create an unprecedented concentration of power in the industry, and would ultimately reduce jobs and increase prices. The move by the FCC to block the merger is in addition to the Justice Department federal antitrust lawsuit that was filed in August.
The FCC gets to weigh in on the merger because combining the two companies; the second and fourth largest wireless phone companies in the U.S., would require a transfer of licenses to use public airwaves for cell and wireless Internet service.
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