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Justice Department Launches Antitrust Investigation Into AT&T, Verizon

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Apr 20, 2018, 3:35 PM by Rich Brome @rbrome.bsky.social

The U.S. Justice Department is investigating AT&T and Verizon for secretly colluding to put carrier-locking ability into the new eSIM industry standard, according to the New York Times. eSIM technology eliminates the physical SIM card that gives a phone its number and identity on the network, replacing it with a virtual SIM that can be loaded and replaced over the network. The Apple Watch and Pixel 2 already include eSIM, but the standard is new and evolving. As originally designed, eSIM could make it easier for consumers to switch their existing phone to a different wireless carrier. AT&T and Verizon are accused of secretly colluding with the GSMA standards group to alter the standard so that eSIM phones could be locked to one carrier. Such a move could be harmful to smaller carriers, and thus the alleged collusion could run afoul of antitrust laws. The Justice Department investigation started when both a phone maker and another carrier filed formal complaints.

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