670 wk4 db2 res

Respond to…

In determining if the AT&T and T-Mobile merger would have violated antitrust laws or not, it is important to first recognize what the antitrust laws are regarding mergers of corporations. According to Section 7 of the Clayton Act, an acquisition is prohibited if it is for the purpose of creating a monopoly and eliminating competition. Acquisitions are allowed if the purpose of the acquisition is not to lessen the competition and create a monopoly. Now with that being said, the real question to ask is what was the real purpose behind the acquisition of T-Mobile by AT&T? Was it to eliminate competition? Or was there a bigger, more pressing reason that was driving the merger?
At first glance, one may jump to an assumption that AT&T must have wanted to acquire T-Mobile to eliminate competition because they would gain customers and have one less competitor with lower rates than them to compete against in the market. This would make it easier for AT&T to keep their prices higher. In fact, many believed this would be exactly what would happen if the merger occurred. “Had AT&T acquired T-Mobile, consumers in the wireless marketplace would have faced higher prices and reduced innovation” (Merced, 2011, para. 11). However, this may not have been the case. “In an effort to sell the deal to regulators and the public, AT&T vowed to honor the T-Mobile service plan prices after the merger” (Moritz, 2011, para. 12). If AT&T was interested only in eliminating competition in order to create and monopoly to keep prices high, why would they agree to keep the T-Mobile prices for their customers after the acquisition? It does not appear that this deal was about the prices or eliminating competition at all. It appears that AT&T was really interested in acquiring T-Mobile for their airwaves. “The company wanted T-Mobile’s cellular airwaves, or spectrum, to relieve its congested network and offer faster service for data-hungry devices like the iPhone” (Merced, 2011, para 2).
After analyzing this situation, I believe that since AT&T was not trying to eliminate competition or create a monopoly as their reason behind the acquisition of T-Mobile, they were not in violation of antitrust laws. I cannot say that down the road this merger would not have eventually had an impact on the competition in the cellular network business at some point, however as far as antitrust laws go, I do not believe that AT&T and T-Mobile were in violation in this merger.
Merced, M. (2011). AT&T Ends $39 Billion Bid for T-Mobile. The New York Times. Retrieved from https://dealbook.nytimes.com/2011/12/19/att-withdraws-39-bid-for-t-mobile/
Moritz, S. (2011, December 20). AT&T Pulls $39 Billion T-Mobile Bid on Regulatory Opposition (Links to an external site.). Deseret News. Retrieved from http://www.deseretnews.com/article/700208468/ATT-pulls-39-billion-T-Mobile-bid.html
Seaquist, G. (2012). Business law for managers [Electronic version]. Retrieved from https://content.ashford.edu/

Don't use plagiarized sources. Get Your Custom Essay on
670 wk4 db2 res
Just from $13/Page
Order Essay

Respond to…

Antitrust laws are federal regulations placed on businesses to ensure that the U.S. economy remains fluid and free of monopolies (Seaquist, 2012). If At&T had merged with T-Mobil, the merger would have not violated the antitrust laws due to the merger would have continued to oligopoly market structure that cell phone carriers currently operate in, not create a monopoly. “Generally prohibits the acquisition of one company’s stock by another company when ‘the effect of such acquisition may be substantially to lessen competition, or to tend to create a monopoly’” (Seaquist, 2012).  The merger would have been a huge change to the way cell companies due to business, due to both phone carriers being dominant in the market. At&T’s CEO believed that with the merger it would help the improvement of service being offered, ad at the same time it would speed up investment in faster networks and drive wireless expansion in rural areas. The merger would have added T-Mobil’s 33.7 million customers to At&t’s 100.7 million customers, in comparison to 107.7 Verizon Wireless’s million customers.  
It’s understandable why the Justice Department sued to stop this merger, I believe that the merger would both had been a positive and a negative one.  With these two well-known companies merging together would allow for higher competition and would allow investors to want to invest, due to having a solid corporation.  On the other hand, T-Mobil wireless plans are $15 to $50 cheaper than comparable AT&T plans, according to an analysis by Consumer Reports, making many of their customers’ looking somewhere else for a more economical plan.
Seaquist, G. (2012). Business law for managers [Electronic version]. Retrieved from https://content.ashford.edu/ (Links to an external site.) (Links to an external site.)
Moritz, S. (2011, December 20). AT&T Pulls $39 Billion T-Mobile Bid on Regulatory Opposition (Links to an external site.). Deseret News. Retrieved from http://www.deseretnews.com/article/700208468/ATT-pulls-39-billion-T-Mobile-bid.html (Links to an external site.)

Place your order
(550 words)

Approximate price: $22

Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
The price is based on these factors:
Academic level
Number of pages
Basic features
  • Free title page and bibliography
  • Unlimited revisions
  • Plagiarism-free guarantee
  • Money-back guarantee
  • 24/7 support
On-demand options
  • Writer’s samples
  • Part-by-part delivery
  • Overnight delivery
  • Copies of used sources
  • Expert Proofreading
Paper format
  • 275 words per page
  • 12 pt Arial/Times New Roman
  • Double line spacing
  • Any citation style (APA, MLA, Chicago/Turabian, Harvard)

Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more
Live Chat+1(978) 822-0999EmailWhatsApp

Order your essay today and save 20% with the discount code LEMONADE