Why is the DOJ Looking Into Sprint?
Most of the objections over Softbank’s (SFTBF.PK) proposed takeover of Sprint (NYSE:S), the United States’ third largest mobile carrier, have cited the deal’s potential to limit competition as a reason to be concerned. But the Department of Justice had other motives when it asked the U.S. Federal Communications Commission for more time to investigate the ramifications that the Japanese company’s acquisition will have on national security.
In a letter submitted to the FCC on Tuesday, the department’s attorney adviser for National Security Division, Jennifer Rockoff, asked the agency to refrain from making any decisions until its review was complete.
“DOJ, [Department of Homeland Security], and FBI (“the Agencies”) are currently reviewing this matter for any national security, law enforcement, and public safety issues but have not yet completed that effort. We therefore request that the Commission defer action until such time as the Agencies notify the Commission of the completion of their review and, based on the results of such review, request appropriate action by the Commission,” read the filing…