The European Commission is investigating whether Apple is unfairly preventing other smartphone manufacturers from competing with the iPhone in the EU, according to the Financial Times (registration required).
The inquiry, prompted by complaints from mobile operators, is focused on technical restrictions on the iPhone and Apple’s distribution deals with the operators. The investigation is still at the preliminary stage; the Commission has sent questionnaires to network operators asking them whether Apple places restrictions on the deals they secure with other smartphone manufacturers, on the way they use marketing budgets, and whether it forces them to buy a minimum number of iPhones.
According to the questionnaire, ‘The Commission has information indicating that Apple and Mobile Network Operators (“MNOs”) have concluded distribution agreements which may potentially lead to the foreclosure of other smartphone manufacturers from the markets.’
In order for a formal investigation to proceed, the Commission will have to satisfy itself that Apple is dominant in the smartphone market in the EU. The recent success of Android handsets, particularly Samsung’s Galaxy S range, makes that unlikely.
