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US Judge Allows Sprint to File Lawsuit Against AT&T Acquisition of T-Mobile

A US judge has allowed wireless carrier Sprint to go ahead and file a case against AT&T's proposed $39 billion acquisition of T-Mobile USA.

According to an article (opens in new tab) on Business Week, the judge ruled that Sprint can pursue a private anti-trust lawsuit even if it is AT&T's competition.

AT&T claims that Sprint should not be allowed to file the lawsuit as it is a competitor. "Where private plaintiffs have successfully pleaded antitrust injury, the fact that they are defendants' competitors is no bar," said U.S. District Judge Ellen Segal Huvelle.

The judge allowed Sprint and a smaller mobile phone carrier C Spire to file a lawsuit against the acquisition, which has been deemed a threat to competition by the US government, AT&T rivals and consumer groups.

Now, the US Department of Justice and Sprint will attack AT&T from both the sides, with the Justice Department looking to determine if the acquisition will harm consumers while Sprint will try to prove that competition in the US wireless market will be compromised.

The judge, however, dismissed some of the claims made by Sprint such as claims that the acquisition would make prices rise and restrict roaming.