Tag Archives: special government favors

Competitors: Stop That Merger!

The proposed AT&T/T-Mobile merger is drawing the usual antitrust scrutiny. Fearful competitors say the $39 billion deal will make the market less competitive. Or so they say. Over at the Daily Caller, I point out that actions speak louder than words:

[I]f Sprint is willing to devote resources to fighting the AT&T/T-Mobile merger, then it probably thinks the new post-merger company will be more competitive, not less. That cuts directly against their main argument – that the merger reduces competition.

Put yourself in Sprint’s shoes for a minute. If your competitors are making what you think is a foolish business decision, you’re not going to try to stop them. If anything, you’ll actively encourage them.

Instead, Sprint’s opposition is proof positive that it thinks the competition is about to get more formidable, not less.

Antitrust authorities, blind to that obvious fact, stand a real risk of stunting the competitive process. They should ignore competitors’ pleas for special government favors and let the merger succeed — or fail — on its own terms. Real competition happens in the market. Not in Washington.

Read the whole article here.