Obama's government has been a target of criticisms. From news networks, to coffee table conversations, to Facebook wall posts. It's felt it all. As if to mock those skeptics, today the Department of Justice filed to block AT&T's merger with T-Mobile. Those who argue that the U.S. government is enslaved to corporate America, think again.
This reminds us of the power we, as consumers, have. Moreover, it displays a key characteristic of open economies: competition. Approximately 90% of the country's wireless connections are collectively channeled through AT&T, T-Mobile, Sprint and Verizon. If the AT&T-Mobile merge was allowed, they would control a very large part of the mobile market. It would tighten consumer choice, increase price and lower the quality of their products. A loss in all fronts.
History tells us that whenever this type of deal occurs, employees feel it the most. There's streamlining, mass layoffs, budget cuts and a shift of power. As an example, this is being felt in the recent Google-Motorola deal. Though, I feel the D.O.J. wasn't only motivated by the consumers' interest. America needs to create jobs, and preserve them. If the AT&T-Mobile deal were to go through, it would mean "streamlining". The American economy cannot afford that with it's $14 trillion of debt. It would be an added liability.
The D.O.J. isn't the only one expressing their thoughts on this matter. The F.C.C. also has problems with this. And if the D.O.J. fails, the F.C.C. will pick up where it left off. Nevertheless, this symbolizes an American government stepping into corporate policy. There will no doubt be debate on whether this is politically justified. But personally, I can rest assured. Having looked at the numbers, this move is a step in the right direction. And although numbers can be wrong, unlike words, they never lie.
Sources: DOJ filing (PDF), Wall Street Journal's Anupreeta Das (Twitter)
