Over a dozen states have stepped up to sue and stop the deal which is going to see two of the two major telecoms in the United States merge their companies into one which is a move according to the state attorney general that is going to be harmful to the consumers as they would be able to raise the prices.
This trial had been scheduled to start early on Monday in a court in New York where the attorney generals of as many as 13 states and the District of Columbia were going to argue against the deal worth $26.5 Billion, which would see the combination of the third- and fourth-biggest companies in telecom. In this suit that is being led by the California and New York attorneys has argued that the deal is going to stop the innovation and also decrease levels of competition leading to a driving up of costs to the consumers and affect the subscribers in a disproportionate manner specifically those who belonged to the households that have lower levels of income and the subscribers who operate on the prepaid basis.
A lot of the low-income subscribers are not able to pass through a credit check and can thus purchase a service for mobile communication on the basis of prepaid services as argued by the complaint which had been filed in the month of June. The complaint has also claimed that the merger may also cost the subscribers of the companies at least $4.5 billion every year.
The suit as per Letitia James has been gathering support of more states as they think it is going to stifle competition.
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