EU scrutinizes Apple’s competitive practices

The European Union is investigating whether Apple is enforcing more favorable treatment than its competitors in contracts with telecom providers, in violation of EU law. That reports a British newspaper. It would not yet be an official investigation.

The European Commission has according to the Financial Times sent several European telecom providers a nine-page survey asking questions about Apple’s sales practices. The Commission has an indication that Apple and telecom providers have entered into distribution agreements that may exclude other manufacturers from the market.

Apple might enforce in the contracts that a competing manufacturer can never get more favorable terms of sale. The European Commission also wants to know whether Apple imposes a minimum number of iPhones to order and whether Apple imposes restrictions on the use of marketing budgets. Finally, the Commission asks whether the iPhone 5 will not work on European 4G networks due to technical or contractual restrictions.

It would not yet be a formal investigation, writes the Financial Times. Before a formal investigation is launched, it must also be established that the iPhone is ‘dominant’ in the smartphone market, while the iPhone is suffering from competition from especially Samsung devices. The providers can respond to the survey until the middle of next month.