10 states sue to stop T-Mobile, Sprint merger

Ten states filed a lawsuit Tuesday seeking to block the proposed $26.5 billion merger between mobile-phone carriers Sprint and T-Mobile.

The states, which include New York and California, argue that the merger would hurt competition and result in higher cellphone bills.

They said even slight rate hikes would hurt lower-income communities, and that folding together the two companies would lead to a “substantial loss” of jobs in the industry.

The deal also faces possible opposition from regulators who might demand changes to the proposal before approving the merger.

The companies did not comment immediately.

Sprint shares dropped by 6.2 percent on Tuesday, while those of T-Mobile fell 1.4 percent.

Read More
%d bloggers like this: