Justice Department Issues Business Review Letter to the GSMA Related to Innovative eSIMs Standard for Mobile Devices

The Department of Justice’s Antitrust Division completed a nearly two-year long investigation into the standard-setting activities of the GSM Association (GSMA), a trade association for mobile network operators. The Antitrust Division’s investigation revealed that, in recent years, the GSMA used its industry influence to steer the design of eSIMs technology in mobile devices. In response to the investigation, the GSMA has drafted new standard-setting procedures that will incorporate more input from non-operator members of the mobile communications industry.  The new standard-setting process will have a greater likelihood of creating procompetitive benefits for consumers of mobile devices; it will also curb the ability of mobile network operators to use the GSMA standard as a way to avoid new forms of disruptive competition that the embedded SIMs (eSIMs) technology may unleash. The GSMA expressed its intent to adopt the new procedures in a request for a business review letter from the Antitrust Division.  After completing its investigation, the division is today issuing a business review letter that expresses concern about the past procedures and some of the resulting provisions in the standard. The letter concludes, however, that the proposed changes appear to adequately address those concerns. In light of these planned changes, the Antitrust Division has no present intention to bring an enforcement action against the GSMA or its mobile network operator members.