EU regulator probes Apple's iPhone sales tactics
27 May 2013
Apple faces EU Probe over iPhones sales tactics
The European regulator has launched an investigation into whether technology giant Apple is using anti-competitive methods to sell its iPhone and throttle rival smartphone makers from the European market, the Financial Times today reported.
The investigation by the European Commission (EC), which is at a preliminary stage, is the result of private complaints from mobile operators.
Fty reported that according to documents seen by it, the EC sent a questionnaire to several European mobile network operators last week to find out whether the distribution terms for Apple's iPhone and the iPad favour the California-based company in such a way that its rivals cannot get better sales deal, said the newspaper.
Apple's rivals complaints revolve around the secret contracts signed with carriers, where operators pay Apple for selling its smartphone and tablet.
US and European carriers dole out huge subsidies to smartphone makers including Apple, and offer attractive discount on smartphones and tablets to customers if they enter into lucrative two-year wireless contracts.
Although Apple is able to wrangle huge subsidies from carriers, analysts opine that the iPhone maker may not get docked since the regulator has to first find out whether Apple is a dominant supplier of these devices in the European Union.
Since 2012, its arch rival Samsung Electronics has been able to upset Apple dominant position in the EU, which may have led to Apple not able to dictate terms on subsidies with European carriers.
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