But the major air carriers did some heavy lobbying, and the plan has been killed in Congress. The same thing is happening with telephones. The 1996 Telecommunications Act was billed as an effort to deregulate an industry. Instead, it, too, has encouraged cartelization. Thanks to recent mergers, four regional phone companies have simply divvied up local phone markets.
None compete with each other.
The law, which was supposed to foster competition, instead has blocked it. Until it does, lucrative local phone service remains the playground of the Baby Bells. Perhaps the software giant did break the law by integrating its Internet Explorer browser into its Windows98 operating system. But Justice's proposed remedy won't create competition. Deregulation equals more competition.