Apple’s famously demanding iPhone contracts may come under the European Commission’s antitrust spotlight, possibly sparking a shift in the balance of power between operators and handset makers ‘ already being disrupted by the move away from subsidies and lock-ins.
According to the UK’s Financial Times newspaper, the EC is sending a questionnaire to carriers, asking them about Apple’s terms and conditions, and particularly its restrictions on which networks are allowed to activate the 4G iPhone.
In March, some cellcos complained to the European Union about various channel policies at Apple, including allegations that it sets excessively high sales quotas to ensure the iPhone gets the lion’s share of a carrier’s marketing budget.
The issue has not yet reached the stage of formal complaints or investigations but the EC is clearly seeking information. According to the FT, its questionnaire asks whether operators are forced to buy a specified quota of iPhones; whether Apple dictates how marketing resources should be allocated; and whether it demands subsidies and sales terms that are ‘at least as favorable’ as those which other vendors receive.
The EC is also said to be looking into potential ‘technical or contractual restrictions on the iPhone 5 that mean it cannot be used on high-speed 4G networks in Europe’. The iPhone 5 caused consternation at some cellcos when it launched without versions for some mainstream LTE frequency options, including Europe’s 800MHz and 2.6GHz bands. However, it then angered even some of the operators which could support the new handset ‘ in Europe, those deploying 4G on 1.8GHz spectrum ‘ by insisting that their networks went through tests before the iPhone could be activated.