A district judge on Wednesday ruled that lawsuits from Sprint and C Spire can proceed against AT&T over its proposed acquisition of T-Mobile, though some claims were dismissed.
"Sprint's and Cellular South's complaints provide factual support for the allegation that AT&T already possesses significant market power as a purchaser of mobile wireless devices, and that the acquisition of T-Mobile threatens them with harm," Judge Ellen Segal Huvelle said in her decision.
Sprint and C Spire, formerly known as Cellular South, sued to stop the proposed $39 billion merger of AT&T and T-Mobile, arguing that it will hurt competition in the market and result in higher prices for consumers, among other things. The suits came after the Department of Justice also sued to block the merger. Judge Huvelle is actually presiding over the DOJ case, and Sprint and C Spire have asked to become part of the DOJ case, but that issue has not yet been decided.
In late September, AT&T filed a motion to dismiss the Sprint and Cellular South lawsuits, arguing that the carriers' filings are simply an effort to "improve their own strategic interests."
Judge Huvelle, however, allowed the companies' complaints regarding competition for wireless devices and roaming to proceed. Other issues were dismissed.
Sprint said it was "pleased" by the decision.
"By allowing Sprint and C Spire Wireless to move forward with these lawsuits, the Court has ensured we receive a fair hearing," Susan Z. Haller, vice president of litigation at Sprint, said in a statement. "Along with the Justice Department and a bi-partisan group of Attorneys General from seven states and Puerto Rico, Sprint has concluded that the transaction would give AT&T the ability to raise prices, thwart competition, stymie innovation, diminish service quality and stifle choice for millions of American consumers."
Eric Graham, vice president of strategic and government relations for C Spire, said the company was "pleased that it will have the opportunity to continue its fight for American consumers, and for the principles of competition and innovation that should drive the wireless industry."
AT&T focused on the parts that were thrown out. "We are pleased with the ruling that dismisses the vast majority of the claims of Sprint and CellSouth. We believe the limited, minor claims they have left are entirely without merit," Wayne Watts, senior executive vice president and general counsel at AT&T, said in a statement.