Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
3Activity
0 of .
Results for:
No results containing your search query
P. 1
Sprint Suit to Block AT&T - T-Mobile

Sprint Suit to Block AT&T - T-Mobile

Ratings: (0)|Views: 1,701|Likes:
Published by inafried

More info:

Categories:Types, Business/Law
Published by: inafried on Sep 06, 2011
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

05/12/2014

pdf

text

original

 
INTHEUNITEDSTATESDISTRICTCOURTFORTHEDISTRICTOFCOLUMBIA
)
SPRINTNEXTELCORPORATION
)
6200SprintParkway
)
OverlandPark,Kansas66251
))
Plaintiff.
)
)
v.))AT&T,INC.)
Case:1:11-cv-01600
208S.AkardStreet
)
AssignedTo:Huvelle,EllenS.
Dallas,Texas75202-2233,
)
Assign.Date:
9/6/2011
)
Description:Antitrust
AT&TMOBILITYLLC)GlenridgeHighlandsTwo,)5565GlenridgeConnector)Atlanta,Georgia30342,
))
T-MOBILEUSA,INC.
)
12920SE38thStreet
)
Bellevue,Washington98006,
)
)
and
))
DEUTSCHETELEKOMAG
)
Friedrich-EbertAllee140
)
53113Bonn,Germany
)
)
Defendants.
)
)
COMPLAINTPlaintiffSprintNextelCorporation("Sprint")bringsthisactionforinjunctivereliefundertheantitrustlawsoftheUnitedStatestoenjointheacquisitionbyAT&T,Inc.,anditswhollyownedsubsidiaryAT&TMobilityLLC(together,"AT&T")ofT-MobileUSA.,Inc.("T-Mobile"),asubsidiaryofDeutscheTelekomAG("DeutscheTelekom").PlaintiffSprint
 
allegesonknowledgeastoitselfanditsownactsandoninformationandbeliefastoallothermattersasfollows:
I.NATUREOFTHEACTION
1.AT&T'sproposedtakeoverofT-Mobileisbrazenlyanticompetitive.Inonefellswoop,AT&T'sproposedpurchasewouldeliminateoneoffournationalcompetitorsandmarginalizeasecond(Sprint),pushingthemarketbacktowardaI980s-stylecellphoneduopolythatwouldforceconsumerstoendurehigherpricesandbedeniedthefruitsofvigorousinnovation.Ifallowedtobeconsummated,themergeralsowouldadverselyaffectbusinessesthatrelyonwirelessservicesandtheInternetandmanyotherkeysectorsoftheeconomy.2.Onitsface,thehorizontalcombinationofAT&TandT-Mobileisaclassicviolationofantitrustmergerlaw,resultinginmarketconcentrationfarinexcessofthethresholdsestablishedbothbyalonganduninterruptedlineofSupremeCourtprecedentandbytheU.S.DepartmentofJustice("DOJ")andFederalTradeCommission("FTC")2010HorizontalMergerGuidelines.Nomatterhowmarketsharesaremeasured-allwirelessservicesforconsumers,postpaidwirelessservicesforconsumers,wirelessservicesforbusinessandgovernmentalaccounts-theproposedtransactionwouldleaveAT&Tcontrollinginexcessof40percentofthenationalmarkets,andwouldgiveittheabilitytoexercisemarketpowerbothunilaterallyandincoordinationwithVerizon,astheseTwinBellstogetherwouldcontrolmorethanthreequartersofallwirelessservices.3.TheeffectsofAT&T'sacquisitionofT-Mobilewouldactuallybefarworsethanthesehighmarketsharesandconcentrationlevelsindicate.First,byacquiringT-Mobile,AT&Twouldberemovingalowpriceandinnovativemaverickcompetitorthatprovidesparticularlydisruptivecompetitioninthemarketplace.Second,Verizon,AT&T'smostsignificant
2
 
competitorpost-merger,wouldnothavetheincentivetoconstrainAT&T,andwouldhaveasubstantiallyincreasedincentivetocoordinatewithAT&Tratherthancompete.Thiswouldleadtohigherpricesforretailaccounts,corporateaccounts,backhaul,androaming.Third,Sprint'sabilitytodisciplineAT&TandVerizoninthemarketplacewouldbediminishedbecauseofitsreducedabilitytoobtaincutting-edgehandsets,itsforeclosurefromkeyapplicationsandcontent,anditsunavoidablerelianceonAT&TandVerizonforkeyinputssuchasbackhaulandroaming.Finally,thesmallwirelesscompanies-MetroPCS,Leap,V.S.Cellular,andothers-haveintheaggregatelessthana7-percentshareofallfacilities-basedwirelessservicesandlessthan3percentofthepostpaidsegment,andaccordinglywouldbeunabletorepositionandexpandtheirbusinessesacrossthecountrytoprovideanyrealconstraintontheTwinBells.
In
short,theadverseeffectsofthismergeroncompetitionwouldbefargreaterthanasimplereductionfromfourcompetitorstothree-whichinthiscaseispresumptivelyillegalinitsownright.4.TheultimateandpredictableeffectoftheproposedtransactionwouldbetotiptheV.S.wirelessindustryeffectivelytowardaduopolycontrolledbyAT&TandVerizon.WiththeassetsAT&TseekstoacquirefromT-Mobile,AT&TandVerizontogetherwouldhave:(1)duopolycontroloverthreequartersofwirelesscustomersandalmost90percentofindustryprofits;(2)exclusiveearlyaccesstoiconichandsets(e.g.,theiPhone)andtheabilitytocapturethenextsuchinnovation-assetskeytoacquiringandretainingcustomersintoday'smarket;(3)preferentialaccesstotheotherproductsandservicesthatmakewirelessservicesattractivetoconsumers,includingthelatestandbestmobileoperatingsystems,theabilitytodeployafullsuiteofapplications,accesstocontentthatconsumersdemand,andincorporationofthelatestdevices(e.g.,cameras,GPSnavigation,music,etc.);(4)significantinputsthatsmaller

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->