On August 31, 2011, “the [U.S.] Justice Department sued to block AT&T’s $39 billion takeover of T-Mobile USA, a merger that would create the nation’s largest mobile carrier. 'We believe the combination of AT&T and T-Mobile would result in tens of millions of consumers all across the United States facing higher prices, fewer choices and lower-quality products for their mobile wireless services,' said James M. Cole, the deputy attorney general.”[1] The New York Times claimed at the time that it was “arguably the most forceful antitrust move” by the Obama administration.[2] To be sure, there were “few blockbuster mergers with the potential to reshape entire industries and affect large swaths of consumers.”[3] However, one could cite the UAL merger with Continental and Comcast’s acquisition of NBC as accomplished mergers. It is more likely that the housing-induced recession made the administration reluctant to risk a major company looking for buyer going bankrupt. I would not be surprised if the vested interests of major mergers and acquisitions “played the bankruptcy card” as leverage with the Justice Department. Moreover, the political power of mega-corporations in the U.S. can be expected to have come into play.
The full essay is at "The Role of Corporate Political Contributions on Anti-Trust Enforcement."
The full essay is at "The Role of Corporate Political Contributions on Anti-Trust Enforcement."
1. Ben Protess and Michael J. De La Merced, “The Antitrust Battle Ahead,” New York Times, August 31, 2011.
2. Ibid.
3. Ibid.
