The Department of Justice has begun an antitrust inquiry of large U.S. carriers like Verizon Communications and AT&T, reports The Wall Street Journal.
Citing anonymous industry insiders, the Journal reported that the informal review will look into whether carriers are abusing their market power. The review is not investigating specific companies; rather, it is expected to cover all areas of the telecom market, from landlines to wireless.
Although specifics are lacking, it was reported that the inquiry also may look at the long-term handset exclusivity agreements that carriers sign with manufacturers. The FCC has already said it will look into exclusive handset deals.
In addition, the investigation may examine the limits carriers place on the applications running over their network, such as VoIP and streaming television.
The Obama administration has brought in increased scrutiny of potentially anticompetitive business practices, which are regulated under the Sherman Antitrust Act. Together, AT&T and Verizon have 90 million wireline customers and about 60 percent of the 274 million wireless subscribers in the United States, making them highly visible candidates for antitrust investigations.
Earlier this spring, the U.S. Senate Committee on the Judiciary Subcommittee on Antitrust, Competition Policy & Consumer Rights looked into AT&T and Verizon’s identical hikes in text messaging rates and heard testimony from Cricket Communications, the subsidiary of Leap Wireless International, about the “in-market” roaming exception.
A CTIA representative today said the organization has not been contacted by the DOJ. Earlier, CTIA President and CEO Steve Largent had taken the side of AT&T and Verizon regarding the text message rates. He also defended the state of the U.S. telecom industry, calling it the “most competitive and innovative in the world.”