DOJ Investigation of Wiresless Messaging Fees

In early 2009, the U.S. Department of Justice began an investigation of alleged collusion between wireless carriers in setting text messaging fees. Compass Lexecon assisted Verizon Wireless in evaluating these claims. Professor Dennis Carlton, supported by a team in Compass Lexecon’s Chicago office including Hal Sider, Allan Shampine and Todd Kendall, presented an analysis to the Department of Justice which demonstrated that Verizon Wireless’ pricing was inconsistent with collusive behavior. The analysis also showed that average per-text rates had fallen substantially during the alleged conspiracy period and demonstrated the consumer benefits resulting from Verizon Wireless’ pricing practices. The Department of Justice closed its investigation without taking any action. We worked with John Thorne and Rob Griffen, inhouse counsel for Verizon.