FCC and DOJ will coordinate reviews of telecom mergers

The Federal Communications Commission and the Justice Department's Antitrust Division will coordinate reviews of proposed telecom mergers to reconcile the agencies' competing policy goals, according to an anouncement from FCC chairman Julius Genachowski on Thursday.

The FCC and Justice have overlapping jurisdiction for review of proposed mergers of communications companies, but different and possibly competing standards for divestitures. The Commission encourages divesting to small businesses and new entrants in wireless markets, while DOJ emphasizes the importance of divesting to a strong competitor.

Commissioner Mignon Clyburn raised the issue after the Wireless Telecommunications Bureau's approval of an April divestiture by Verizon to Atlantic Tele-Network in connection to Verizon Wireless's acquisition of ALLTEL. Clyburn noted that Verizon had little to no guidance on what procedures it should use to reconcile the potentially divergent goals.

“Increased coordination between DOJ and the FCC on divestitures will benefit small businesses, new entrants and all parties to merger transactions," Genachowski said. "I am particularly grateful to Commissioner Clyburn for highlighting this issue, and for her focus on, insight into and contributions to ensuring our progress in this area.”

“In addition to such increased coordination, I believe it is crucial that specific guidance is provided to both interested buyers and sellers, so that both DOJ’s requirements and the FCC’s policy goals are satisfied," Clyburn said. "I look forward to working with the Chairman’s Office and staff...to ensure that small businesses and new entrants have a realistic opportunity to purchase communications assets in the future.”