AT&T and T-Mobile have withdrawn their application to the FCC for their planned merger. Following the FCC’s decision to conduct a hearing on the validity of the proposed merger, the two companies have switched their focus to gaining approval from the Department of Justice. AT&T has also indicated it expects to book a pretax $4 billion charge in the fourth quarter for a break-up fee to T-Mobile should the deal fall through.
The Department of Justice sued to block the merger in August as it believed that the deal posed may violate antitrust laws. The companies believe that they can convince the DOJ that the concessions that they are prepared to offer to make the deal happen will not adversely affect consumers.