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"In just three years, Apple's iPhone has cornered a huge chunk of the smartphone market, and it continues to gain momentum at a rapid pace.  But while the iPhone has been a boon to Apple, it's been just as important to its exclusive carrier partner, AT&amp;T.  No other carrier has the iPhone, and this has created a stir among users unhappy with AT&amp;T's service while simultaneously being a major reason users switch from other mobile networks.\nThe U.S. Department of Justice may not be happy with this and other exclusivity arrangements, though, and has opened a review of AT&amp;T, Verizon, and some of the other major telecoms.  According to a report in The Wall Street Journal, this \"initial review\" will explore issues like anti-competitive practices, the sheer market share of AT&amp;T and Verizon (60% of wireless customers), and the practice of locking up phones via exclusivity agreements.  Could the government end the AT&amp;T-Apple partnership?The review, being led by Obama's Assistant Attorney General for Antitrust Christine Varney, may be a prelude to the use of the Sherman Act as a case against telecom industry giants.  Here's what could be reviewed, according to WSJ:\n\n\"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&amp;T's exclusive right to provide service for Apple Inc.'s popular iPhone in the U.S.\nThe Justice Department may also review whether telecom carriers are unduly restricting the types of services other companies can offer on their networks, one person familiar with the situation said.\"\n\nIf this review turns into a DOJ probe and lawsuit, it could force Apple to break its agreement with AT&amp;T to only sell iPhones through the AT&amp;T network.  However, as the WSJ article intelligently points out, this possibility may be a longshot:\n\"It would be a very hard case to make,\" said Donald Russell, a Washington attorney who reviewed a number of major telecom mergers as a DOJ antitrust lawyer in the Clinton Administration. \"You don't have any firm that's in a dominant position. Usually, you need to show a firm has real market power.\"\nWhile preventing the formation of monopolies is important, we think calling Apple and AT&amp;T's exclusivity deal a violation of the Sherman Act would be a stretch.  But this could put the heat on Apple to make their popular smartphone available on Verizon or other carriers when their current deal with AT&amp;T is up.  \nWhat do you think?  Should the government get involved in the AT&amp;T-Apple partnership?  Are Verizon and AT&amp;T breaking antitrust laws?  Give us your thoughts in the comments."^^<http://www.w3.org/2001/XMLSchema#string>
<http://mashable.com/2009/07/06/doj-iphone-att/>