The U.S. Department of Justice is reportedly investigating whether two major wireless carriers colluded with an industry trade group to make it more difficult for customers to switch service providers.
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The investigation is said to be focused on AT&T, Verizon and the GSM Association, a London-based group that represents the interests of wireless carriers globally, The New York Times reported, citing sources familiar with the matter. The probe began after a device maker, identified in the Times report as Apple, and a separate wireless carrier filed a formal complaint.
Officials requested in February that the three entities facing investigation turn over information related to purported efforts to undermine eSim, a technology that allows consumers to switch their phone numbers from one carrier to another easily. AT&T and Verizon stand accused of seeking the ability to keep phone numbers locked to their networks regardless of eSim.
The Justice Department, the GSMA and Apple have all declined to comment on the situation. AT&T told the Times that it was aware of the investigation and cooperating with authorities. Verizon has denied any wrongdoing.
“The accusations regarding this issue are much ado about nothing,” Verizon spokesman Rich Young said in a statement to The Wall Street Journal. “The reality is that we have a difference of opinion with a couple of phone-equipment manufacturers regarding the development of eSIM standards. Nothing more.”
The probe will unfold alongside the Justice Department’s ongoing effort to block a proposed $85.4 billion merger between AT&T and Time Warner, citing concerns that the deal would be harmful to consumers.
