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Weekly Ad#inTheNews {min-height:20px;} Advanced Search Advanced Search X include all of these words: include any of these words: include this exact phrase: exclude: Select a date range this week past 30 days past 3 months past year Create a custom date range From: To: TechnologyThe business and culture of our digital lives, from the L.A. TimesCalifornia attorney general to join AT&T, T-Mobile antitrust suitSeptember 16, 2011 | 11:56am
California Atty. Gen. Kamala Harris is joining the U.S. Department of Justice in an antitrust suit opposing the proposed merger of AT&T and T-Mobile, sources close to the case confirmed.
Harris on Friday afternoon is expected to announce the legal action.
“This is huge,” said Samuel Kang, general counsel for the Greenlining Institute, a Berkeley consumer group that advocates to provide better financial and utility services for low-income communities.
“We’re talking about the state’s top consumer advocate [Harris] questioning the merger. There are huge questions that have implications for the largest [cellphone] market in the United States.”
On Aug. 31, the U.S. Justice Department sued to challenge AT&T’s $39-billion takeover of T-Mobile USA Inc., based on worries that consumers would be hit with higher prices, worse wireless service and dwindling mobile phone options. Obama administration officials also said they were worried that the combination of the two companies would be a job killer.
The Justice lawsuit was followed a week later by a similar action by Sprint-Nextel Corp., which also sued to block the merger. Sprint, the third-largest wireless carrier behind Verizon Wireless and AT&T, stands to be marginalized if it is forced to compete with two far larger carriers, including a merged AT&T and T-Mobile.
On Thursday, a group of 15 Democratic members of Congress wrote to President Obama urging him to back off his opposition to the merger, saying it would create thousands of jobs. Critics have called that claim into question.
-- Marc Lifsher and David Sarno
RELATED:
Justice Department sues to block AT&T takeover of T-Mobile
Back off opposition to AT&T merger, Dem lawmakers tell Obama
AT&T surprised by Justice Department antitrust suit over T-Mobile deal
Photo: California Atty Gen. Kamala Harris holds a news conference at the Millennium Biltmore Hotel in Los Angeles just after she was elected in November, 2010. Credit: Brian van der Brug / LAT
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