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Department Of Justice May Withdraw AT&T Lawsuit Which Would Be Bad News For Them

Typically withdrawing a lawsuit would be seen as a victory for the defendant but not in the case of the nations second largest wireless carrier AT&T.

The Department of Justice is considering whether or not to halt or withdraw it’s lawsuit against AT&T and their proposed merger with T-Mobile, the nations fourth largest wireless carrier. This seems like a no brainer as over Thanksgiving AT&T withdrew their application from the FCC to merge with T-Mobile and that’s exactly the reason cited by the DOJ to stop the lawsuit.


More after the break
The Department of Justice feels it would be a waste of tax payer dollars to continue this suit given the fact that AT&T needs the FCC’s approval to move forward with the transaction.

That’s not the same way AT&T’s lawyers see it though. AT&T wants their day in court against the Department of Justice. Somehow they feel that they could win the suit brought on by the DOJ. They would then use that win to go back to the FCC when they resubmit the application to merge.

Last month FCC commissioner Julius Genachowski asked for an administrative hearing on the proposed merger. Before the FCC could convene for that hearing AT&T withdrew the application.¬† AT&T was hoping to keep the FCC’s feelings about the merger out of the public eye however two days after the withdrawal the FCC published their findings in a report despite the fact the merger was no longer on the table.

What ensued was a mudslinging battle between AT&T and the FCC which of course didn’t look good for AT&T.

Both parties will be back in court on Thursday arguing whether or not the DOJ can postpone or withdraw the lawsuit.

source: mashable

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