US DOJ To Review AT&T’s Exclusive Deal With Apple Over The iPhone
The iPhone is one of the most popular cellphones ever, although many have predicted that it will be a fail. AT&T was on negative streak but Apple showed up with the iPhone and the Cupertino-based company saved the carrier. Although AT&T is trying to extend the iPhone exclusivity deal with Apple until 2011, the US Government might prevent this partnership.
According to a report by the WSJ, the US Department of Justice has opened a review of AT&T in order to look for anti-competitive practices. The US DOJ is trying to find out if exclusivity deals are legal, and what effect does this have on other smaller carriers. AT&T is not the only carrier who’s in trouble as Verizon Wireless will be investigated too. AT&T and Verizon currently feature 60% of the wireless consumers partly because major carriers can reach an exclusive deal with major phone manufacturers for the best cellphones that show up on the market.
The US DOJ review will be led by Christine Varney, President Barack Obama’s Assistant Attorney General, who might make use of the Sherman Act in order to find something “wrong” with major telecoms. It seems like the review was somewhat “suggested” by lawmakers and regulators who questioned AT&T’s exclusivity deal with Apple for the iPhone. Another problem could be the fact that major carriers are “restricting the types of services other companies can offer on their networks.”
Many people familiar with the matter say that it would be hard to find something, and to file suit against AT&T and Verizon because either one of these companies are not in a “dominant position” like Intel or Microsoft who have a “real market power.”
We don’t have other important details, but more information should emerge soon. I’m pretty sure that if the US DOJ’s review is against AT&T then the iPhone will reach Verizon in no time.
via Mashable















