What The Justice Department’s Slapdown Of AT&T Really Means

Why did the government sue? Shortly after the merger was announced, the government said it would investigate the deal. Typically, this leads to negotiations in which the company offers to take steps to ensure the deal will not be anti-competitive. The fact the government is now going to court means negotiation have broken down.

AT&T can do one of three things: it can fold its cards, go to court, or try to reach a settlement by offering new concessions to the government. but a settlement is unlikely because there are few concessions that would satisfy the Justice Department at this point.