T-Mobile and AT&T Merger

1863 Words8 Pages
For months, the prospect of a T-Mobile and AT&T merger has become more public. The prolonged merger discussion has left the public wondering if the acquisition will allow AT&T to completely rule the telecommunications market, leaving Verizon and Sprint in the dust. Mobile subscribers have been left unsure by the shocking announcement, wondering how their pockets and cellular services will be affected. With lawsuits being filed by both the Department of Justice and Sprint, the future of the acquisition is unclear. AT&T stands by its history of fair dealing, publishing the following in its Code of Ethics:

AT&T does not seek competitive advantages through illegal or unethical business practices, meaning that no employee, officer, or director should take unfair advantage of anyone, including customers, suppliers, and competitors, through manipulation, concealment, abuse of privileged information, misrepresentation of material facts, or unfair dealing practices. (“Corporate Governance”, 2011)

With the significant possibility of the merger giving AT&T the chance to monopolize, it seems as though the company has lost sight of its code of maintaining fair competition.

American business is protected by pro-competition legislation, including antitrust laws that were enacted to prohibit monopolies. As noted in the Sherman Antitrust Act of 1890, it is illegal for companies to hold a large concentration of economic power. AT&T is no stranger to manipulating this federal law in order to gain an unfair advantage, according to the Federal Communications Commission. During the 1980’s, AT&T made a name for itself by practically dominating its industry, an unfair competitive advantage that contradicts its Code of Ethics. However, the company’s ...

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