It appears as if the T-Mobile and Sprint merger is going to move on as planned after they succeeded in yet another legal hurdle. The state of New York said that they would no longer appeal the decision of the court that allowed the merger to continue.
A coalition of attorney generals led by New York Attorney General Letitia James and California Attorney General Xavier Becerra sued the stop T-Mobile’s TMUS, +1.41% purchase of Sprint S, +0.23% for $26.5 billion. The lawsuit contends that the merger of two of the biggest telecommunication companies in the United States will stifle healthy competition and puts customers’ rights in the lower hand. The merger, as the lawsuit argues, would harm consumers by driving up prices for cellphone service.
However, a federal judge in New York sided with the carriers last week, February 11, allowing the merger to continue.
As a response, N.Y. Attorney General James said that following considerations and analyses of the decision, the state will no longer appeal the decision.
“Instead, we hope to work with all the parties to ensure that consumers get the best pricing and service possible, that networks are built out throughout our state, and that good-paying jobs are created in New York,” James said.
T-Mobile Chief Executive John Legere called the decision a “huge victory.”
“Now, we are finally able to focus on the last steps to get this merger done,” he said.
Meanwhile, Sprint Executive Chairman Marcelo Claure said in a joint press release that the decision “validates our view that this merger is in the best interests of the U.S. economy and American consumers.”