The United States Justice Department has closed an antitrust probe into a trade group including AT&T and Verizon, among its members criticized for giving the consumers a hard time to switch carriers. In its letter sent to the GSM Association, which is setting the standards on eSIM mobile technology and including the four major carriers in the U.S., the Justice Department announced it was happy that the group is set to use the standard-setting procedure to develop an eSIM standard that's more consumer-friendly.
Called eSIM, this technology lets consumers switch wireless carriers without the need to insert another physical SIM card. This then makes it easier to compare wireless carriers, not to mention simpler to choose a new service when the subscriber desires for it. Before, there were claims that the standard was set in a manner that made it more difficult to change or switch networks. Another previous allegation was that it was harder for the new players in the industry to enter the market.
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Specific Wireless Carriers Unconfirmed
In the letters it issued regarding the antitrust probe, the Justice Department did not mention specifically which wireless switching technology carriers are included in the said investigation. However, in April last year, reports had it that the said government agency was probed supposed coordination by Verizon Communications, AT&T Inc., and the trade group. More so, Sprint and T-Mobile are part of the organization, as well. The latter-mentioned companies gave no response to a request for comment.
In a separate statement, GSMA said the department "had looked at millions of documents." It added that its Business Review Letter is convincing that the Justice Department didn't find any violation of antitrust laws. Meanwhile, in the letter, the Justice Department announced it was closing the probe since the trade group agreed to modify some of its processes.
Closing of the Probe as a Result
The Justice Department said without specifically identifying names, as an outcome of the probe, it developed remarkable concerns that the process of GSMA deeply damaged and enabled the competitors "to coordinate anti-competitively." The Department continued, it had no current intention to push through with an antitrust enforcement initiative against the conduct of GSMA.
Telecommunications expert and consumer advocate, Gigi Sohn, claimed that the said letter was "a slap on the wrist" since the Department's Antitrust Department did not do anything more than force a modification in anti-competitive behavior.
The Antitrust Law
Antitrust implementation by either the Federal Trade Commission or DOJ is not the only way to guarantee that the American economy is working competitively. The expert agencies' regulation also plays a vital role in guaranteeing that consumers have choices in the market. Just like any other product, antitrust law and regulation go better together, with each portraying an essential role at various places in the market. Lastly, Antitrust enters when things have gone sideways already, and the so-called "anti-competitive practices are hurting customers."
Incidentally, the past, the federal government strongly enforced the pro-competition policies, which guaranteed that firms "challenge each other on a level playing field." These standards are essential for each sector of the economy. For instance, communication and technology, the Department of Justice banned the proposed merger AT&T and T-Mobile merger in 2011. Relatively, the Department noted that the later-mentioned company was an essential innovator in the wireless business with several historic firsts, including the first Android device.
