The US Federal Communications Commission has blasted AT&T's proposed acquisition of T-Mobile USA in a staff report that was released yesterday.
The FCC has claimed in its report [PDF] that the $39 billion acquisition would harm competition in the market and result in massive job losses. It would also suppress the innovation that comes with market competition.
According to c|net, AT&T and T-Mobile tried to prevent the FCC from releasing the report. The FCC also accused the organisations of making misleading statements about the benefits that would come with the merger.
"The staff finds the applicants' assertions that the transaction would create jobs in the United States to be inconsistent with AT&T's internal analyses and record statements concerning cost reductions from the merger," the report read.
"The staff also finds that there are serious questions whether the merger of AT&T and T-Mobile would cause other public harms that are not offset by the claimed benefits", the FCC added.
Meanwhile, AT&T criticised the FCC for releasing the report, asking why the FCC chose to release the staff report when it has no bearing under law.