AT&T and Verizon Said to Face U.S. Probe Over Mobile Technology

AT&T and Verizon are under investigation by U.S. antitrust officials over whether the companies colluded to make it tougher for consumers to switch wireless carriers, according Bloomberg, citing people familiar with the matter.

Apple was joined by other equipment makers in complaining to the government about the carriers’ practices, two other people with knowledge of the matter said. The department issued demands to the companies and the GSMA, a mobile industry standards group, for information on possible collusion, said the people, who asked not to be named.

Regulators have pressured the phone companies to make it easier for consumers to switch carriers. The big four, Verizon, AT&T, T-Mobile and Sprint, agreed in 2013 to let consumers use smartphones on other networks after contracts expire. The following year President Barack Obama signed legislation giving consumers the freedom to switch between wireless carriers without having to purchase a new phone.

Verizon spokesman Rich Young said in an emailed statement that the matter is “a difference of opinion with a couple of phone equipment manufacturers regarding the development of e-SIM standards. Nothing more.“ GSMA declined to comment. A spokeswoman for the Justice Department didn’t respond to a request seeking comment.

AT&T said it’s aware of the investigation and has provided information to the government in response to its requests. The company said it “will continue to work proactively within GSMA, including with those who might disagree with the proposed standards, to move this issue forward.“

Apple rolled out the technology with some of its latest iPad models in 2016, but has thus far not introduced it in smartphones. While the iPad does have the technology, not all carriers use it. On its website, Apple says, “if you buy one of these models at a carrier, the embedded Apple SIM might be locked to that carrier or disabled.“

T-Mobile and Sprint allow iPad users to switch between carriers via a menu on the iPad, while AT&T users can use the eSIM but not to switch to another carrier. Verizon doesn’t support it at all.