European Carriers Tattle on Apple to EU for Anticompetitive Contracts
March 22, 2013 12:03 PM
comment(s) - last by
Sales quotas are said to be one detail being examined
The European Union (EU) has received complaints about
anticompetitive practices carried out by Apple
, and its administrative department -- the European Commission -- is closely monitoring the situation.
Carriers throughout Europe (but mainly French carriers) have sent information regarding their contracts with Apple to the European Commission saying that Apple's rules for carrying the iPhone are anticompetitive.
While Apple's terms are different from carrier to carrier, a major complaint from the European carriers is that Apple forces them to sell a certain amount of iPhones over a determined amount of time. If the carrier does not meet this quota, then they must pay Apple for the unsold devices.
The carriers say that this forces them to focus more on selling the iPhone each month than competing devices.
What does Apple have to say about this?
“Our contracts fully comply with local laws wherever we do business, including the E.U.," said Natalie Kerris, an Apple spokeswoman.
The European Commission hasn't opened a formal antitrust investigation yet because it hasn't received a formal complaint of anticompetitive practices. The Commission wants evidence that Apple's actions have hurt consumers and it wants to make sure that this is an issue it can solve.
However, the European Commission is monitoring the situation. It will have to speak to the carriers before launching a full investigation.
The carriers said they must agree to Apple's quota or they won't receive the iPhone at all. This is an issue, considering its one of the best-selling smartphones that customers regularly ask for. Having the iPhone draws many customers to carriers in the first place.
If Apple were to be subject to an investigation (and said to have been anticompetitive by the European Commission), the fine could be as high as 10 percent of the company's most recent annual sales worldwide.
This isn't Apple's first run-in with the European Commission. In December 2011,
Apple and book publishers
Penguin, Harper Collins (News Corp., USA), Simon & Schuster (CBS Corp., USA), Hachette Livre (Lagardère Publishing France) and Verlagsgruppe Georg von Holzbrinck (owner of inter alia Macmillan, Germany)
were under the microscope when the EU found out about their selling practices. The EU saw this as
anticompetitive against the likes of Amazon
, and launched an investigation.
Apple and four of the publishers (all but Penguin)
submitted a settlement proposal to the EU in August 2012, saying that the publishers will not restrict or limit an e-book sellers' ability to set, change or reduce e-book prices for two years. They also won't interfere with an e-book retailer's choice to offer discounts
, and added the five-year suspension of the
"most-favored nation" contract. The investigation was settled later in the year.
The New York Times
This article is over a month old, voting and posting comments is disabled
3/25/2013 8:24:40 AM
Oh I dunno.
Browser comes shipped with OS with no other choice. Something Microsoft has and still is being fined billions for.
Extremely closed system. Something Microsoft has been fined billions for.
OS includes many other free pieces of software. Something Microsoft has been forced to remove citing anti-competitive behavior.
Near monopoly of the MP3 player market. If Microsoft had the same thing, they'd be fined.
"A politician stumbles over himself... Then they pick it out. They edit it. He runs the clip, and then he makes a funny face, and the whole audience has a Pavlovian response." -- Joe Scarborough on John Stewart over Jim Cramer
EU Reportedly in Favor of Amazon in Apple E-Book Investigation
December 13, 2012, 12:22 PM
Apple, Book Publishers May Settle EU Investigation in One Month
September 20, 2012, 8:07 AM
Surface 2 LTE Tipped for AT&T, Power Cover Available for Pre-order
March 12, 2014, 9:15 AM
HTC One Leaks: LED Smart Cover, Carrier Models, Google Play Ed.
March 11, 2014, 5:30 PM
New HTC One Camera Details Revealed via Leaked Ad
March 11, 2014, 9:20 AM
India Could Rock Google With Its Biggest Antitrust Fine Yet -- $5B USD
March 10, 2014, 8:12 PM
Apple Releases iOS 7.1, The First Major Update to Its "Rethought" Mobile OS
March 10, 2014, 1:52 PM
BlackBerry CEO Jokes that iPhone Users are "Wall Huggers"
March 10, 2014, 12:20 PM
Most Popular Articles
Bitcoin King Pt. II: Mt. Gox's Dictator Karpelès Proves Tragically Flawed
March 7, 2014, 1:12 PM
Windows 8.1 Update 1 Leaked Early
March 7, 2014, 9:30 AM
Hack Reveals Fallen Bitcoin CEO's Posh Tokyo Penthouse
March 10, 2014, 4:28 PM
Vine Users No Longer Allowed to Post Pornographic Videos
March 7, 2014, 1:47 PM
Staples Closing 225 Stores Across North America
March 7, 2014, 1:24 PM
Latest Blog Posts
Tesla vs. BMW: Who Has the Safer EV?
Feb 1, 2014, 2:56 PM
Justice Leaks Details of Next HTC One Two Flagship Phone
Dec 5, 2013, 4:04 PM
Global Cyber Espionage Concerns Reveal Growing Cyber Armies
Nov 29, 2013, 11:04 AM
Is The Period Becoming an Expression of Anger?
Nov 26, 2013, 2:02 PM
NSA and Congress -- You Will Never Kill the Constitution, It's an Idea
Nov 10, 2013, 2:00 PM
More Blog Posts
Copyright 2014 DailyTech LLC. -
Terms, Conditions & Privacy Information