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US: Cali AG warns companies: “If you’re consolidating, we’re looking”

 |  December 10, 2019

California Attorney General Xavier Becerra, whose state is leading a fight to stop T-Mobile US  from buying Sprint, warned on Tuesday his agency was concerned about corporate consolidation, reported Reuters. 

He said in an interview with Reuters that if states can successfully block the Sprint deal it would send a message that “antitrust enforcers will be back in the driver’s seat. It will make industries, not just telecoms, but industries, recognize that there are antitrust laws that can be enforced.” 

California, along with New York, is leading the effort in Manhattan federal court to show the proposed $26.5 billion deal between the No. 3 and No. 4 wireless carriers is illegal because it would raise prices, particularly for users on prepaid plans.

Last month, San Francisco-headquartered Charles Schwab agreed to buy TD Ameritrade Holding in a $26 billion deal to create a brokerage giant in a market that has been ravaged by price wars.

While analysts expect federal regulators will take a soft line on the deal, Becerra did not rule out a state probe by his office. “We will look at anything that has an impact on the ability of consumers at the end of the day to get a good deal. And financial services are critically important,” he said.

Full Content: Reuters

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