Ten attorneys general from states across the country and the District of Columbia filed a federal lawsuit on Tuesday against the pending merger between T-Mobile and Sprint. The group — led by New York’s Letitia James and California’s Xavier Becerra — maintains that the $26 billion deal would limit competition among wireless mobile carriers and ultimately hurt consumers.
“Although T-Mobile and Sprint may be promising faster, better, and cheaper service with this merger, the evidence weighs against it. This merger would hurt the most vulnerable Californians and result in a compressed market with fewer choices and higher prices,” Becerra said in a statement.
The merger was proposed in April 2018 and would combine two of the four wireless networks in the U.S., which include AT&T and Verizon. The deal is still awaiting approval from the U.S. Justice Department.
Consumer protection groups and numerous politicians have publicly fought the deal since it was announced and have called for it to be rejected.
“The merger would be a disaster for consumers, workers, and competition. America’s wireless market provides vital connectivity to millions of people, but it won’t remain competitive if it shrinks to just three major providers,” Joshua Stager, senior policy counsel at New America’s Open Technology Institute, said in a statement Tuesday that praised the multi-state lawsuit.
In February, top Democrats in the Senate sent letters to the Justice Department and the Federal Communication Commission (FCC) condemning the merger, citing analyses that estimates Americans' monthly phone bills would dramatically rise and that the deal would kill roughly 30,000 jobs.
The signatories included Sen. Bernie Sanders (D-Vt.), Sen. Elizabeth Warren (D-Mass.), Sen. Kirsten Gillibrand (D-N.Y.), and Sen. Cory Booker (D-N.J.) — all now candidates for the party’s 2020 presidential nomination — among others.
Just last month, however, FCC Chairman Ajit Pai endorsed the deal and recommended its approval, arguing that it will hasten the development of 5G cellular networks in the U.S.
“I believe that this transaction is in the public interest and intend to recommend to my colleagues that the FCC approve it. This is a unique opportunity to speed up the deployment of 5G throughout the United States and bring much faster mobile broadband to rural Americans. We should seize this opportunity,” Pai said in a statement.
The stance was in contrast to the Senators’ position laid out in the letter, which read “we remain unconvinced that the merger would speed up the development of next-generation 5G networks or extend affordable coverage to all Americans.”
Moreover, Sprint says that the merger is necessary for its survival as a company. The carrier told federal regulators in April that it is losing customers, revenue, and cash flow due to inconsistent demand. “Simply put, Sprint is not on a sustainable competitive path,” the company wrote in a filing to the FCC.
The ten attorneys general and other opponents of the deal argue, however, that merger will only hurt consumers and stifle competition.
“When it comes to corporate power, bigger isn’t always better,” N.Y.’s Attorney General James said in a statement. The merger “would not only cause irreparable harm to mobile subscribers nationwide by cutting access to affordable, reliable wireless service for millions of Americans, but would particularly affect lower-income and minority communities here in New York and in urban areas across the country.”
The other states that joined the lawsuit are Colorado, Connecticut, Maryland, Michigan, Mississippi, Wisconsin, and Virginia as well as Washington D.C.
A big-screen adaptation of the anime “Chainsaw Man” has topped the North American box office, beating a Springsteen biopic and “Black Phone 2.” The movie earned $17.25 million in the U.S. and Canada this weekend. “Black Phone 2” fell to second place with $13 million. Two new releases, the rom-com “Regretting You” and “Springsteen — Deliver Me From Nowhere,” earned $12.85 million and $9.1 million, respectively. “Chainsaw Man – The Movie: Reze Arc” is based on the manga series about a demon hunter. It's another win for Sony-owned Crunchyroll, which also released a “Demon Slayer” film last month that debuted to a record $70 million.
The Federal Aviation Administration says flights departing for Los Angeles International Airport were halted briefly due to a staffing shortage at a Southern California air traffic facility. The FAA issued a temporary ground stop at one of the world’s busiest airports on Sunday morning soon after U.S. Transportation Secretary Sean Duffy predicted that travelers would see more flights delayed as the nation’s air traffic controllers work without pay during the federal government shutdown. The hold on planes taking off for LAX lasted an hour and 45 minutes and didn't appear to cause continued problems. The FAA said staffing shortages also delayed planes headed to Washington, Chicago and Newark, New Jersey on Sunday.
Boeing workers at three Midwest plants where military aircraft and weapons are developed have voted to reject the company’s latest contract offer and to continue a strike that started almost three months ago. The strike by about 3,200 machinists at the plants in the Missouri cities of St. Louis and St. Charles, and in Mascoutah, Illinois, is smaller in scale than a walkout last year by 33,000 Boeing workers who assemble commercial jetliners. The president of the International Association of Machinists says Sunday's outcome shows Boeing hasn't adequately addressed wages and retirement benefits. Boeing says Sunday's vote was close with 51% of union members opposing the revised offer.
The stunning indictment that led to the arrest of more than 30 people — including Miami Heat guard Terry Rozier and other NBA figures — has drawn new scrutiny of the booming business of sports betting in the U.S. The multibillion-dollar industry has made it easy for sports fans — and even some players — to wager on everything from the outcome of games to that of a single play with just a few taps of a cellphone. But regulating the rapidly-growing industry has proven to be a challenge. Professional sports leagues’ own role in promoting gambling has also raised eyebrows.
Tesla, the car company run by Elon Musk, reported Wednesday that it sold more vehicles in the past three months after boycotts hit hard earlier this year, but profits still fell sharply. Third-quarter earnings fell to $1.4 billion, from $2.2 billion a year earlier. Excluding charges, per share profit of 50 cents came in below analysts' estimate. Tesla shares fell 3.5% in after-hours trading. Musk said the company's robotaxi service, which is available in Austin, Texas, and San Francisco, will roll out to as many as 10 other metro areas by the end of the year.
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