The U.S. Justice Department is investigating AT&T and Verizon for secretly colluding to put carrier-locking ability into the new eSIM industry standard, according to the New York Times.
eSIM technology eliminates the physical SIM card that gives a phone its number and identity on the network, replacing it with a virtual SIM that can be loaded and replaced over the network.
The Apple Watch and Pixel 2 already include eSIM, but the standard is new and evolving.
As originally designed, eSIM could make it easier for consumers to switch their existing phone to a different wireless carrier.
AT&T and Verizon are accused of secretly colluding with the GSMA standards group to alter the standard so that eSIM phones could be locked to one carrier. Such a move could be harmful to smaller carriers, and thus the alleged collusion could run afoul of antitrust laws.
The Justice Department investigation started when both a phone maker and another carrier filed formal complaints.
