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UC Law SF Communications and Entertainment Journal

Abstract

In 1982, the United States District Court for the District of Columbia rendered its decision in United States v. AT&T, ordering the divestiture of AT&T as delineated in the Modified Final Judgment (MFJ) appended thereto. The divested Regional Bell Operating Companies are now seeking legislation which would effectively place enforcement of the MFJ into the hands of the Federal Communications Commission. The author examines the need for line-of-business restrictions, the constitutionality of the proposed transfer legislation, and the dangers to competition if such legislation is enacted. The author argues that enforcement of the line-of-business restrictions is necessary to promote fair competition in telephone service markets. Moreover, attempts to transfer responsibility for enforcement of the MFJ to the FCC would violate fundamental principles of separation of powers and defeat sound public policy. The author concludes that enforcement of the MFJ by the federal courts should continue in order to foster increased competition.

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