Justice Dept. investigating if AT&T, Verizon make it too hard to switch wireless carriers

Edward C. Baig | USA TODAY

Verizon says a report of an antitrust investigation brought by the Justice Dept. is “much ado about nothing.”

Citing six people with knowledge of the matter, the New York Times reported Friday that Verizon, AT&T and the telecommunications standards organization G.S.M.A. were being investigated for possible collusion by DOJ for making it more difficult for consumers to easily switch wireless carriers.

The Times says the investigation began five months ago after formal complaints were filed by an unnamed device maker and an unnamed wireless carrier.

At issue is a technology solution known as eSIM, that lets consumer switch carriers remotely without having to insert a new SIM card into their device. Such cards authenticate phone subscribers.

But the allegations are that AT&T and Verizon, in collusion with the G.S.MA., were working on anticompetitive standards that would lock a consumer to the two leading carrier’s respective networks, even if the device had e-SIM technology.

Apple uses teSIM technology in its iPads and its latest Apple Watch devices.

Verizon spokesman Rich Young sent an email to USA TODAY, stating that "the accusations regarding this issue are much ado about nothing. We are striving to provide a better experience for the consumer. The reality is that we have a difference of opinion with a couple of phone equipment manufacturers regarding the development of e-SIM standards. Nothing more.”

Young added that Verizon has been, and continues to work, “proactively and constructively” with the DOJ and the industry, “as we strive to find a mutually acceptable solution."

An AT&T spokesperson emailed a similar sounding statement to USA TODAY: “We are aware of the investigation into GSMA’s process for developing eSIM standards that provide a better experience for consumers. Along with other GSMA members, we have provided information to the government in response to their requests and will continue to work proactively within GSMA, including with those who might disagree with the proposed standards, to move this issue forward.”

Representatives from DOJ and the G.S.M.A. declined comment. DOJ is already in the process of attempting to block AT&T's $85.4 billion merger with Time Warner.

AT&T’s (T) stock close down 0.43% Friday; Verizon (VZ)shares dropped 1.09%.

Email: ebaig@usatoday.com; Follow USA TODAY Personal Tech Columnist @edbaig on Twitter