Antitrust law

Report: DOJ unlikely to approve T-Mobile/Sprint deal

T-Mobile CEO John Legere and Executive Director of Sprint Marcelo Claure talk before testifying to the House Judiciary Committee
T-Mobile CEO John Legere (left) and Executive Director of Sprint Marcelo Claure talk before testifying before Congress in March. Photo: Chip Somodevilla/Getty Images

The Wall Street Journal reported on Tuesday afternoon that Justice Department officials told T-Mobile and Sprint that their proposed merger is unlikely to be approved as currently structured, citing anonymous sources.

Why it matters: The companies have said synergies from the deal would allow a faster roll-out of 5G, among other benefits. According to the WSJ, antitrust officials "questioned the companies’ arguments that the combination would produce important efficiencies for the merged firm." U.S. competition enforcers typically focus on a merger's impact on prices for consumers.

Companies are attacking each other for antitrust

Illustration: Sarah Grillo/Axios

In a remarkable display of firepower, big companies are subjecting each other to charges of monopolistic behavior with a zest rivaling that of regulators.

What's happening: In both the U.S. and Europe, politicians and regulators are ratcheting up to curtail the market power of Big Tech and other industries. But even before they are fully engaged, market actors from college athletes to smartphone parts suppliers and newspaper publishers are taking matters into their own hands.