DXPG

Total Pageviews

Friday, March 22, 2013

Daily Report: Europe Weighs iPhone Sale Deals With Carriers for Antitrust Abuse

European Union regulators are examining the contracts Apple strikes with cellphone carriers that sell its iPhone for possible antitrust violations after several carriers complained that the deals throttled competition, Brian X. Chen, Nick Wingfield and Kevin J. O’Brien write on Friday in The New York Times.

Although they have not filed formal complaints, a group of European wireless carriers recently submitted information about their contracts with Apple to the European Commission, according to a person briefed on the communications with the carriers who asked not to be identified. This person said the accusations focused on Apple’s contracts with French carriers, though other countries may also be involved.

In a statement, the European Commission, the union’s administrative arm, which oversees antitrust enforcement in the 27-nation bloc, confirmed that it was examining Apple’s carrier deals. But it said it had not begun a formal antitrust investigation. The commission is not obligated to act until it receives a formal complaint of anticompetitive behavior. That it is already examining the contracts suggests that it is taking the carriers’ concerns seriously.

“We have been contacted by industry participants, and we are monitoring the situation, but no antitrust case has been opened,” said Antoine Colombani, a spokesman for Joaquín Almunia, competition commissioner of the European Union.

It was unclear how many carriers were in discussions with the European Union. Based on several interviews with people briefed on iPhone contracts, it appears that Apple’s contracts with some smaller European carriers were stricter than those with larger companies.

People briefed on the carriers’ relationships with Apple, who declined to be named because Apple did not permit them to speak publicly about the contracts, said the terms that some European carriers must accept to sell iPhones were unusually strict, making it difficult for other handset makers to compete.