The chairman of the Federal Communications Commission is reviewing the proposed merger of AT&T and T-Mobile USA, a move that is done when it opposes a merger, according to an official who spoke anonymously.

FCC Chairman Julius Genachowski made his position known in a proposed order circulated to fellow members of the FCC Tuesday, reports Businessweek quoting an official familiar with the matter.

The FCC's commission concluded that the $39 billion merger would result in higher prices for consumers, less innovation, fewer jobs and less investment in the U.S., according to the report.

In August, the U.S. Justice Department opposed the merger by filing an antitrust lawsuit against AT&T.