Justice Department probes Verizon spectrum deal

The Justice Department is investigating whether Verizon's bid to buy $3.6 billion worth of wireless spectrum licenses from cable companies including Comcast and Time Warner would hurt competition.

Cellphones and other wireless devices use spectrum, or airwaves, to transmit signals. Wireless carriers have struggled in recent years to gain enough spectrum to meet the growing data demands of smartphones and tablet computers. 

The antitrust division is "looking at the proposed transaction," Justice Department spokeswoman Gina Talamona said. 

A person familiar with the investigation told Bloomberg the probe will focus on whether that deal and a subsequent one with Cox Communications would concentrate too much spectrum in Verizon's hands and whether the marketing agreements between the companies run afoul of antitrust law.

The investigation is not the Justice Department's only recent foray into regulating the wireless market. AT&T abandoned its $39 billion bid to buy T-Mobile on Monday after the Justice Department sued to block the deal. 

AT&T said gaining access to T-Mobile's spectrum would have helped it ease congestion on its crowded network, but the Justice Department argued the merger would have stifled competition and hurt consumers. 

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