Neil Hughes
The executive body of the European Union is investigating whether Apple is engaging in anticompetitive practices with its iPhone sales tactics across the continent.
Documents obtained by the Financial Times show that the European Commission has begun looking into whether Apple's agreements with carriers are illegal. The commission has expressed concern that the deals could ensure Apple's rivals cannot secure better sales agreements.
The investigation reportedly began after the commission received "private complaints from mobile operators." The commission's investigation remains preliminary, and no formal charges have been brought against Apple.
The investigation was brought to light by questionnaires sent by the commission to mobile operators across Europe. The nine-page document reportedly inquires whether carriers are being forced to buy a minimum number of iPhones, or if they are restricted on how to use their marketing budgets.
The document also asks whether Apple enforces any clauses on subsidies for handsets that compete with the iPhone, and it quizzes operators on whether contractual restrictions prevent the iPhone 5 from accessing high-speed 4G networks in Europe. Carriers have until June 17 to reply to the questionnaire.
Previous European Union investigations of Apple have taken a closer look at the company's warranty practices and the iPad maker's e-book deals with publishers. But those inquiries have not led to formal antitrust lawsuits.
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74 Comments
Surely any manufacturer can set the terms of its own distribution agreement? If you don't like them don't sign up.
Surely any manufacturer can set the terms of its own distribution agreement?
As long as they don't violate any laws...
Competing with your products instead of distribution clauses is the way to go.
Surely any manufacturer can set the terms of its own distribution agreement? If you don't like them don't sign up.
Apple pretty much sets the contract from my understanding and if the carrier doesnt like it, they dont get the iPhone. It has already been made known that Sprint is losing money from carrying the iPhone because of the contract that Apple requires. For other carriers, they probably see it as, "If we dont have the iPhone, we will lose our customers to the competition who have been waiting for their contract to end so they can get the iPhone with someone else."
I don't see anything illegal in making a product that the market really really wants, then squeeze the balls on everyone who's trying to sell that product to extract maximum profit from it.
Yet legality away, Apple is a bitch when it comes to negotiation. Apple wants deals that are often favorable to them, at the expense of its partners. I wouldn't mind seeing Apple lower the bar a bit and make the phones available to more carriers to increase its customer base.
Apple pretty much sets the contract from my understanding and if the carrier doesnt like it, they dont get the iPhone. It has already been made known that Sprint is losing money from carrying the iPhone because of the contract that Apple requires. For other carriers, they probably see it as, "If we dont have the iPhone, we will lose our customers to the competition who have been waiting for their contract to end so they can get the iPhone with someone else."
Indeed. Apple way of dealing with the carriers is rotten to the bone. All the concerns in the investigation are valid. Bullying the carriers is a double edge sword, especially when youre products are on the decline.
Because of the big market share in the US, the US carriers have no choice to accept Apple terms. I have seen numerous times Verizon and AT&T CEO's on CNBC complaining about subsidies and how they would loved to get rid of them, mainly because of Apple way of doing business with them. If you are wondering why the carriers stores push anything but the iphone to the customers, its because they hate Apple.
Elsewhere in the world, lost of carriers are not offering the iphone because of unacceptable Apple terms. To a lot of internationnal carriers, Apple tiny market share in there countries make it difficult for Apple to strike deals because the carriers dont care if they dont offer the iphone. So on top of not having there products being distributed, Apple is getting an anti-trust lawsuit. If there is one country where an anti-trust lawsuit should be made, its the US.
This is one the reasons Apple absolutly must deliver a sub $300, so it can be sold unlock by lots of internationnal carriers. I hope Apple gets to his sense and stop bullying the people that sell there products.