17
Jun
09

U.S. Senators’ “Trust Busting”–Why?

I recently posted to Twitter an article from PCWorld.com reporting that a group of Senators have sent a letter to the FCC urging it to consider regulating device/carrier exclusivity deals in the mobile device industry. The most obvious one that comes to mind is the iPhone deal between Apple Inc. and AT&T. If you want an iPhone you need AT&T. However Apple and AT&T are not, by any means, the only companies with such a deal.

There is a term in the business world that explains what agreements like these create: a competitive advantage. A competitive advantage is any inherent or created edge that a company possesses that sets it apart from its competitors. A competitive advantage may be created by partnering with another company.

First of all, the only Constitutional power given Congress that is even remotely related to business is the regulation of interstate commerce (Article I, Sect. 8, Clause 3). This enumerated power applies to commerce between states or with foreign powers. Phone/carrier exclusivity deals do not fall into either category.

On the night of Obama’s election to the presidency I wrote an article borrowing heavily from “Nineteen Eighty-Four” imagery. At the time I considered that perhaps I was too hasty had not given the new president enough time to prove himself. Well within the first six months of what is sure to be a long and grueling term, he has proven me right. And now it seems that liberals (and big government folks in general) are emboldened by the leftist presence in the Oval Office.

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