June 22, 2009
Posted by Timothy Karr

President Barack Obama's pick to chair the Federal Communications Commission said that if confirmed by the Senate, he will ask the agency to investigate exclusive handset deals.

In so doing, FCC nominee Julius Genachowski joins Acting Chair Michael Copps, who last week called on the agency to "open a proceeding to closely examine wireless handset exclusivity arrangements."

"The Commission as the expert agency should determine whether some of these arrangements adversely restrict consumer choice or harm the development of innovative devices," Copps said. "It should take appropriate action if it finds harm."
Genachowski called for an investigation as well, via a written response to questions from the Senate Commerce Committee, which voted on June 19 to approve his nomination.

In the response, Genachowski said that as chair, he would ensure that the FCC takes up a petition by the Rural Cellular Association, which calls exclusive deals between wireless carriers and cell phone manufacturers anti-competitive and anti-consumer.

"This is an important step in the right direction. Senate hearings this week exposed the laundry list of harms caused by exclusive deals in the wireless industry," said Ben Scott, Free Press policy director.

"These exclusive deals back consumers into a corner—forcing them to choose phone or service. The path to innovation is paved by openness—and unlocking devices is a good start."