DOJ Opens Review of Telecom Industry

Apparently, the Department of Justice has begun an initial review to determine whether large U.S. telecom companies such as AT&T and Verizon have abused the market power they've amassed in recent years. The review of potential anti-competitive practices is in its very early stages, and it isn't a formal investigation of any specific company at this point, the people said. It isn't clear whether the agency intends to launch an official inquiry. Among the areas the Justice Department could explore is whether wireless carriers are hurting smaller competitors by locking up popular phones through exclusive agreements with handset makers, according to the people. In recent weeks lawmakers and regulators have raised questions about deals such as AT&T's exclusive right to provide service for Apple's popular iPhone in the US. The Justice Department may also review whether telecom carriers are unduly restricting the types of services other companies can offer on their networks, one person familiar with the situation said. The scrutiny of the telecom industry is an indication of the Obama administration's aggressive stance on antitrust enforcement. The Justice Department's antitrust chief, Christine Varney, has said she wants to reassert the government's role in policing monopolistic and anti-competitive practices by powerful companies.