DOJ approval “reads like a complaint”
The DOJ’s unusual statement about the wireless industry oligopoly shows that the Justice Department staff and antitrust chief “clearly did not want to approve this,” stated Harold Feld, senior VP of consumer advocacy group Public Knowledge. The press release “reads like a complaint,” not an announcement of a merger approval, he added.
Daniel Hanley, senior legal analyst at the Open Markets Institute, said that “Slater could easily make a public comment or resign in protest. If she isn’t allowed to do the job Congress entrusted her with, then she can leave with her principles intact.” The Trump administration is failing to enforce antitrust laws “even when encountering a blatantly unlawful action that could result in a gov win,” he wrote.
The cable industry, which has been competing for mobile customers, issued a statement in response to the DOJ’s approval of T-Mobile’s transaction. “While cable broadband providers are aggressively investing to deliver real mobile competition, cost savings, and other benefits to millions of wireless consumers, the Big 3 are continuing their desperate attempts to thwart this new competition through aggressive spectrum stockpiling strategies,” cable lobby group NCTA said while urging policymakers to promote competition and fight excessive concentration of spectrum licenses.
Despite approving the T-Mobile deal, Slater said in her statement that the DOJ investigation “raised concerns about competition in the relevant markets for mobile wireless services and the availability of wireless spectrum needed to fuel competition and entry.”
US Cellular competed against the big carriers “by building networks, pricing plans, and service offerings that its customers valued, and which for many years the Big 3 often did not offer,” Slater said. “To the chagrin of its Big 3 competitors, US Cellular maintained a sizable customer base within its network footprint by virtue of its strong emphasis on transparency, integrity, and localized customer service. Accordingly, as part of its investigation, the Department considered the impact of the potential disappearance of the services offered to those customers of US Cellular—soon to become T-Mobile customers following the merger—that chose US Cellular over T-Mobile or its national competitors.”
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