Department of Justice looking into handset deals

The DoJ is investigating exclusive deals signed between telcos and handset makers

The US Department of Justice (DoJ) has begun an anti-trust investigation of the telecoms industry.

Sources cited by The Wall Street Journal claim that the DoJ is looking into several practices within the industry, most notably the exclusive deals signed between telcos and handset manufacturers.

The investigation could lead to a new challenge tothe practice of signing exclusive deals which tie a device to a certain carrier.

While the practice has been popular in the US for years, countries in Europe and Asia are challenging the deals and forcing the sale of unlocked devices, such as the Apple iPhone.

News of the investigation was welcomed by consumer rights groups. Lobbying group Public Knowledge said in a statement that the investigation was "long overdue".

"Consumers have suffered over the past 10 years as the industry has consolidated and strengthened its hold over which services can be offered and which equipment can be used," said Public Knowledge president and co-founder Gigi Sohn. "Competition is almost non-existent in crucial services for home and business use."

Both the US Congress and the Obama administration have been indicating for weeks that it may challenge the practice. In late June, a number of telcos were called before the US Senate to testify on the practice.

Shortly after, the Federal Communications Commission said that it would be opening its own investigation of the exclusive deals.