Got a tip for us? Share it...

U.S. Department of Justice Reviewing Wireless Carrier Exclusivity Agreements

The Wall Street Journal reports that the U.S. Department of Justice has opened a preliminary inquiry into potential anti-competitive practices by the country's largest wireless carriers. One of the major issues being investigated is the existence of handset exclusivity contracts such as that between AT&T and Apple for the iPhone.

Among the areas the Justice Department could explore is whether wireless carriers are hurting smaller competitors by locking up popular phones through exclusive agreements with handset makers, according to the people. In recent weeks lawmakers and regulators have raised questions about deals such as AT&T's exclusive right to provide service for Apple Inc.'s popular iPhone in the U.S.

AT&T and Verizon are expected to be the prime targets of the inquiry, as the two companies control a combined 60% of the U.S. wireless market and an additional 90 million landline subscribers.

The inquiry comes several weeks after several U.S. Senators issued a letter to the Federal Communications Commission urging the agency to investigate the exclusivity arrangements between handset manufacturers and wireless carriers.

Top Rated Comments

(View all)

34 months ago
Now this comes out. Phone companies and wireless providers have been doing this for years.
Rating: 0 Positives / 0 Negatives
34 months ago
It's about time!
Rating: 0 Positives / 0 Negatives
34 months ago
i cant imagine anything bad coming from this other than the carriers hiking up their subscription prices as "retaliation" if they can't make certain devices carrier specific. As a consumer i prefer this, i just hope the hardware manufacturers support it as well.
Rating: 0 Positives / 0 Negatives
34 months ago
Exclusive handsets have been a staple of wireless providers for pretty much as long as they've been around. Pretty sad that it takes the iPhone to finally cause concern with the practice.

Hopefully something good comes from it. Like Verizon getting the iPhone.
Rating: 0 Positives / 0 Negatives
34 months ago
Good news for consumers
Rating: 0 Positives / 0 Negatives
34 months ago

Exclusive handsets have been a staple of wireless providers for pretty much as long as they've been around. Pretty sad that it takes the iPhone to finally cause concern with the practice.

Hopefully something good comes from it. Like Verizon getting the iPhone.


i don't know if the iPhone was the driving factor. I would like to be able to check out the Palm Pre but since my company uses AT&T, no dice
Rating: 0 Positives / 0 Negatives
34 months ago
Hopefully this loosens the controlling grip of the wireless companies. But I have this feeling that not much is going to change, at least not anytime soon.
Rating: 0 Positives / 0 Negatives
34 months ago
Exclusivity contracts plus the fact that AT&T refuses to unlock an iPhone after your two year contract is up. As far as I know, they've never had such a stern refusal with any other phone. This has shady written all over it.
Rating: 0 Positives / 0 Negatives
34 months ago
I thought this would happen ... t is sucky for customers to not be able to choose
Rating: 0 Positives / 0 Negatives
34 months ago
if i want my company to have an exclusive deal with another company that's my right. the government needs to stay out. what private citizens do are of no concern to the government as long as they're not infringing on the rights of others.
Rating: 0 Positives / 0 Negatives

[ Read All Comments ]