Courtesy of Benzinga.
European cellular service firms are upset with Apple (NASDAQ: AAPL) for implementing anti-competitive measures for carrying the iPhone.
According to The Wall Street Journal, multiple European carriers have submitted complaints to the European Union about their contracts with Apple.
The EU antitrust watchdog is looking into those complaints but insists that it is not a formal investigation. The EU also said that smartphone competition remains strong, but it will “intervene” if there proves to be any signs of anti-competitive behavior.
The complaints stem from one of Apple’s most controversial business practices. In order to obtain the iPhone, Apple reportedly requires European carriers to sell a minimum number of units.
The New York Times recently detailed this practice, where Apple sets a quota for how many iPhones must be sold during a three-year period.
If the carrier fails to sell enough iPhones, the company will be required to pay Apple for each unsold device.
These terms may sound harsh, but Apple will not sell the iPhone to carriers that don’t agree to them.
None of this can be confirmed, however. An Apple spokesperson told AppleInsider that its contracts “fully comply with local laws wherever we do business,” including the EU.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at 248-636-1322 or louis@benzingapro.com. Follow him @LouisBedigianBZ
