House Judiciary Committee Won't Open Antitrust Probe

A spokesman for the House Judiciary Committee on Monday said it would not open a formal investigation into claims that the regional Bell operating companies violated antitrust laws by plotting a $40 million lobbying campaign with equipment makers.

"Right now the committee is not planning any formal inquiry on this issue," Jeff Lungren, a spokesman for the House Judiciary Committee said.

Lungren says that F. James Sensenbrenner, House Judiciary Committee chairman, has said "from the descriptions and the information we've seen, [he] believes that this activity is protected by the First Amendment."

Today trade groups representing several telecommunications providers asked New York State Attorney General Eliot Spitzer to investigate claims that the regional Bell operating companies illegally conspired with vendors to build a war chest to pressure the federal government to abolish current regulations.

The United States Telecom Association, the trade group representing BellSouth Corp., SBC Communications Inc. and Verizon Communications Inc., outlined plans in a memo to ask the largest equipment makers for up to $500,000 for three years to fund the lobbying campaign.

USTA executives say there was nothing illegal about an Oct. 20 dinner meeting in Washington, D.C. and a related memo.

Margarita Tapia, a spokeswoman for Senate Judiciary Committee Chairman Orrin Hatch, said last month the committee planned to review the allegations to determine if any action was warranted. Tapia said Monday the senator had not made an announcement one way or the other. She said it is possible the Senate will adjourn tomorrow for the year and return Jan. 20.

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