T-Mobile’s Acquisition of Sprint Cleared by Federal Court


  • The acquisition of Sprint Corporation by T-Mobile US, Inc. and its parent company (collectively, “T-Mobile”), which was challenged by a coalition of 14 AGs, has been cleared by a federal court.
  • As previously reported, a bipartisan group of AGs led by New York AG Letitia James sued to enjoin T-Mobile from acquiring Sprint, arguing that these companies are two of the four largest wireless phone service providers in the country, and alleging that T-Mobile’s proposed acquisition would decrease competition, increase market concentration, and increase prices.
  • In his decision, Judge Victor Marrero of the U.S. District Court for the Southern District of New York did not find sufficient evidence to support the plaintiffs’ arguments that T-Mobile would engage in anticompetitive behavior; that Sprint, absent the merger, could continue operating as a strong competitor to T-Mobile in the nationwide market; or that other parties would not enter the market to increase competition.
  • In a statement about the decision, AG James stated that her office is reviewing its options, including a possible appeal.