WSJ: Justice Dept May Examine AT&T's Exclusive iPhone Deal with Apple
TUESDAY, JULY 7, 2009 -- The Wall Street Journal reports that as part of an informal review of the power wielded by large telelcommunications companies, the Justice Department may examine AT&T's exclusive deal with Apple regarding the iPhone.
"Lawmakers and regulators have raised questions about deals such as AT&T's exclusive right to provide service for Apple Inc.'s iPhone in the U.S," says the Journal. "Big carriers say limiting exclusive deals would hurt innovation."
The paper notes that AT&T, with its iPhone deal, isn't alone in striking exclusive arrangements. Verizon is the exclusive provider of Research In Motion Ltd.'s touch-screen BlackBerry Storm in the U.S. Sprint Nextel Corp. will be the only carrier with the Palm Inc. Pre until early next year.
AT&T and Verizon control 60% of the 274 million U.S. wireless subscribers and they operate large portions of the Internet backbone, said the Journal.
No one quoted in the Journal story expects anti-trust suits to be filed as a result of the investigation. Instead, the Justice Deptartment action is seen as a signal from the Obama administration that this White House won't be turning a blind eye to the dealings of big business. [PAB]
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