The USA's Department of Justice is reported to have started an initial review to determine whether large U.S. telecom companies have abused the market power they've amassed in recent years. Citing people people familiar with the matter, the Wall Street Journal said it was not yet clear if the agency intends to launch an official inquiry.
The investigation is thought to include the issue of exclusive handset deals, which has been a topical issue in the USA in the past few weeks. Last month, four US Senators wrote to the Federal Communications Commission (FCC) asking for an investigating into whether exclusive deals between network operators and handset manufacturers are anti-competitive.
An earlier letter sent last week by the Rural Cellular Association (RCA), commented on the recent decision from the U.S. Court of Appeals for the District of Columbia Circuit supporting its position that handset exclusivity agreements harm consumers and impede marketplace competition. The RCA started petitioning the FCC on the issue last May.
The newspaper said that the investigation could rely on anti-trust laws, such as the Sherman Antitrust Act that has been used in the past against industry giants.
"It would be a very hard case to make," said Donald Russell, a Washington attorney who reviewed a number of major telecom mergers as a DOJ antitrust lawyer in the Clinton Administration. "You don't have any firm that's in a dominant position. Usually, you need to show a firm has real market power."
On the web: The Wall Street Journal
Posted to the site on 6th July 2009
Posted to: www.cellular-news.com/story/38383.php