Assistant Attorney General Delrahim Derides States' Effort to Derail T-Mobile/Sprint Merger

The prospect that "third parties [could] undercut...federal enforcement decisions" — such as the pending T-Mobile/Sprint merger — is one of the greatest concerns in the new antitrust environment, Assistant Attorney General Makan Delrahim explained. He reminded people that the Federal Communications Commission, the Department of Justice, and many states approved the merger in 2019. But then attorneys general from 10 states and the District of Columbia sued to prevent the alliance. A decision is still pending.

"So, we have two specialized federal agencies reviewing the T-Mobile/Sprint transaction" and deeming it legal, Delrahim said. "Yet, we have a minority of states and the District of Columbia trying to undo that relief across the entire country. If you find this situation odd, you’re not alone." "We often work closely with our state attorneys general partners in enforcement actions," he continued. "Here, however, a small group of state attorneys general did not reach consensus." Assistant AG Delrahim contended that such actions are "incompatible with the orderly operation of our antitrust merger laws and telecommunications regulations. It creates the risk that a small subset of states, or even perhaps just one, could undermine beneficial transactions and settlements nationwide." Delrahim said, "That any state, or even any individual, can undo the nationwide relief secured by the federal government and approved by a federal court. That would wreak havoc on parties’ ability to merge, on the government’s ability to settle cases, and cause real uncertainty in the market for mergers and acquisitions," he said, noting that "Permitting states to undermine federal enforcement also would be contrary to congressional intent."