AT&T says it is ending its $39 billion bid to buy T-Mobile USA after facing fierce government objections. AT&T's purchase of T-Mobile from Deutsche Telekom of Germany would have made it the largest cellphone company in the U.S. AT&T is currently the country's second-largest wireless carrier, while T-Mobile is the fourth-largest.
The Justice Department sued to block the merger on Aug. 31, saying it would reduce competition and lead to higher prices. Last month, the companies withdrew their application to the Federal Communications Commission after its chairman also opposed the deal.
It is unclear if AT&T will still have to pay T-Mobile the exhorbitant break up fee or not. Also in question is the rumor about AT&T and T-Mobile creating a joint venture.
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