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T-Mobile CEO John Legere poses with Spring CEO Marcelo Claure before a Senate subcommittee hearing last June. (Twitter Photo)

T-Mobile’s proposed $26 billion merger with Sprint is facing a roadblock from the U.S. Department of Justice, according to a new report from the Wall Street Journal.

Justice Department officials warned the companies that their merger isn’t likely to receive approval under the current proposal, anonymous sources told the Journal.

The wireless carriers need sign-off from DOJ and the Federal Communications Commission to complete the merger. T-Mobile and Sprint claim that merging will increase competition with their larger rivals AT&T and Verizon. Their entreaty to regulators also claims that merging will increase American competitiveness in the next generation of wireless technology known as 5G.

DOJ is reportedly unconvinced. Staffers in the department question the validity of those arguments and are concerned about removing a competitor from the wireless industry, according to the Journal.

In April 2018, T-Mobile and Sprint agreed to merge and create a $146 billion company under the T-Mobile name. The companies plan to complete the merger this year if they receive regulatory approval.

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