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Assessing DOJ’s Proposed Remedy in Sprint/T-Mobile: Can Ex Ante Competitive Conditions in Wireless Markets Be Restored?

Author

Listed:
  • Nicholas Economides

    (Professor of Economics, NYU Stern School of Business, New York, New York 10012)

  • John Kwoka

    (Neal F. Finnegan Distinguished Professor of Economics, College of Social Sciences and Humanities, Northeastern University)

  • Thomas Philippon

    (Max L. Heine Professor of Finance, NYU Stern School of Business, New York, New York 10012)

  • Robert Seamans

    (Associate Professor of Management and Organizations, NYU Stern School of Business, New York, New York 10012)

  • Hal Singer

    (Managing Director at Econ One, Adjunct Professor at Georgetown McDonough School of Business)

  • Marshall Steinbaum

    (Assistant Professor, Economics Department, University of Utah)

  • Lawrence J. White

    (Robert Kavesh Professor of Economics, NYU Stern School of Business, New York, New York 10012)

Abstract

As economists with significant experience in competition and regulatory matters, we offer comments on the remedies proposed by the Department of Justice to address the competitive effects flowing from the proposed merger of Sprint and T-Mobile, as recognized by the DOJ’s Complaint. We find that the Proposed Final Judgment cannot and will not address the anticompetitive harms identified in the Complaint, or restore the ex ante competitive conditions in the affected antitrust product markets. By eliminating Sprint as an independent competitor, the Sprint/T-Mobile merger, even in the presence of DOJ’s proposed remedy, would inflict serious antitrust injury on consumers and competition.

Suggested Citation

  • Nicholas Economides & John Kwoka & Thomas Philippon & Robert Seamans & Hal Singer & Marshall Steinbaum & Lawrence J. White, 2019. "Assessing DOJ’s Proposed Remedy in Sprint/T-Mobile: Can Ex Ante Competitive Conditions in Wireless Markets Be Restored?," Working Papers 19-14, NET Institute.
  • Handle: RePEc:net:wpaper:1914
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    Keywords

    Telecommunications; Merger; Tunney Act; Sprint; T-Mobile; Dish; DOJ;
    All these keywords.

    JEL classification:

    • L1 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance
    • L4 - Industrial Organization - - Antitrust Issues and Policies
    • L5 - Industrial Organization - - Regulation and Industrial Policy
    • L9 - Industrial Organization - - Industry Studies: Transportation and Utilities

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