Government could get a partner in AT&T suit

Corporate money could help the government fight an antitrust battle for the first time, depending on the outcome of an argument in court this week.

AT&T and Sprint spent the month filing dueling legal briefs on whether corporate competitors can join the Justice Department's case against AT&T's proposed $39 billion merger with T-Mobile. A federal judge will hear oral arguments on Monday.

Sprint's suit could provide the Justice Department's lawyers all of the legal resources of a billionaire corporation and allow Sprint's lawyers to strategize with the government on everything from evidence to arguments.

That would be a first.

Never in the history of modern antitrust law has a corporation joined the federal government in an antitrust battle, raising the question of how much corporate money can give the government an edge in such battles.

Sprint, for its part, has tried to make this kind of effort seem old hat. It points to 13 cases during the modern antitrust era in which competitors filed suit on antitrust grounds.

But of the six cases in which the companies actually were permitted to sue, none involved a corporation entering a federal government suit. Largely small regional suits in comparison with the markets in play in the AT&T merger, some of the cases didn't even involve government regulators; rather, they originated when one company decided to sue another one.

Those cases could be of huge significance in determining whether Sprint has standing to sue. But their dissimilarity to this situation underscores that Sprint would be forging a new kind of alliance here.

It's no wonder, then, that the Justice Department seems conflicted on the request by Sprint and C Spire Wireless (formerly Cellular South) to join its case. Originally, Justice said it was completely neutral on the competitors jumping into the fray. But as October's comment cycle wore on, the department seemed to change its tune, arguing that Sprint should be allowed to at least participate in pretrial processes.

Sprint, from the start, has emphasized its "resources" in explaining its suit. "With today's legal action, we are continuing that advocacy on behalf of consumers and competition, and expect to contribute our expertise and resources in proving that the proposed transaction is illegal," said Susan Haller, vice president of litigation at Sprint, when the lawsuit was filed.

Judge Ellen Huvelle could decide on the Sprint/C Spire question during Monday's oral arguments on this issue, but she has discretion to make the decision when she chooses. The Justice Department sued to block the merger in August. AT&T has asked the court to block the suit.