EU mulls Apple antitrust investigation over mobile contracts

Jennifer Baker, IDG News Service
24 March, 2013
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The European Commission is still deciding whether to launch an antitrust investigation into Apple’s contracts with European mobile phone operators, Competition Commissioner Joaquin Almunia’s team has said.

Concerns have been raised by a group of European telecommunications operators, it added, but no formal investigation has been launched

The unnamed companies claim that the contracts Apple sets for selling its iPhone are too strict and possibly anticompetitive, but they stopped short of making a formal complaint. However, the Commission can launch an investigation without a complainant if it believes that an infringement may have taken place.

There is no time-limit on deciding a course of action. If Apple was found to have broken EU competition rules, the Commission could fine the company up to 10 percent of its annual turnover.

IDC Research Director Francisco Jeronimo said that strict contracts are nothing new.

“Most operators in Europe have the iPhone so it would be difficult to prove anticompetitive behavior. But for operators it is much better to balance the power with other vendors because they don’t want to be dependent on Apple,” he said.

No one really knows what the terms of individual contracts are, Jeronimo added.

Apple is the second-biggest player in Europe for smartphones, behind Samsung.


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