The European Commission investigates Apple’s iPhone, iPad sales tactics

[RaduTyrsina]

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Apple might be America’s sweetheart, but the tech giant is not faring out so well in the mother continent, Europe. Recent information showcase that the executive body of the European Union has the American tech giant under its radar. Out flat - Apple is basically being accused of unfair tactics in the iPhone sales sector which promote the extinction of competitiveness.

This news has been relayed to us by the publication Financia​​l Times, which stumbled upon some questionnaires sent out to carriers based in Europe. By sending out these formularies the Commission aims to make an informed decision as to whether the partnerships between Apple and the mobile operators are legal. The most important problem the investigating team brings up in the documents is the fact that Apple seems to boycott all sales agreements carriers have with other smaller or local companies.

So in the questionnaires the carriers are asked whether or not Apple imposes a minimum number of devices that need to be ordered or if the tech giant has been awarded some special, more beneficial contract deal, compared to other companies. Another important question raised is whether Apple limits 4G access in Europe on its latest iPhone 5.

“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.â€

And if you’re curious to know how this feud against Apple started out, it was because the carriers filed complaints against Cupertino in the first place. However the endeavor is still in its infancy, so there’s still a good chance nothing will come out of it, after all.

Source: Cnet

 

[s2mikey]

So, apple sells more phones than other companies because that's what the consumers want and that's wrong or unfair how? Not sure I get it but oh well.

 

[matse]

I agree with you to some extent.

 

[s2mikey]

I agree with you to some extent.

If they find that apple actually did something illegal then that's one thing. But, otherwise, it just seems like sour grapes from other companies.

 

[iJamesH]

The big bad Apple bully is stealing my customers from buying my "inferior to their products" product so I go and complain to foreign politicians

 

[s2mikey]

The big bad Apple bully is stealing my customers from buying my "inferior to their products" product so I go and complain to foreign politicians

This kind of thing happens with any successful company though, doesn't it? At some point someone has to put them through the ringer per say.

 

[Kaykaykay]

So, apple sells more phones than other companies because that's what the consumers want and that's wrong or unfair how? Not sure I get it but oh well.

There are plenty of scenarios that could be possible. For instance, let's say there are two toilet paper makers, A and B. Maybe A is more popular (as in greater sales), but B also sells. If A tells a retailer, hey, if you sell B toilet paper, I will not sell you my A toilet paper. That would be anti-competitive because that's essentially taken away consumer choice and unfairly squeezed out competitor B (at least under many laws aimed at ensuring competition). Such laws are aimed at keeping competition going, to the benefit of consumers. Substitute toilet paper with whatever product or service, and I hope you get the picture.

So far, there are accusations. Let's see what results.

 

[iJamesH]

This kind of thing happens with any successful company though, doesn't it? At some point someone has to put them through the ringer per say.

Yeah but whatever happened to healthy competition. If someone created a superior product you try to create something better. You don't go and cry to politicians that's just absurd. Look at Apple. They didn't invent the wheel they perfected it. They took already on the market products and made them better. So why not make a product that's better then your competitors?

 

[Kaykaykay]

Yeah but whatever happened to healthy competition. If someone created a superior product you try to create something better. You don't go and cry to politicians that's just absurd. Look at Apple. They didn't invent the wheel they perfected it. They took already on the market products and made them better. So why not make a product that's better then your competitors?

The argument that competitors are making is that Apple is not allowing healthy competition and letting its products speak for themselves. If the accusations are proven, that means there's been dirty dealing, not fair competition.