Apple is being examined over anticompetive behavior

The New York Times reports that European Union regulators have a deep interest in the contracts between Apple and iPhone vendor partners in order to identify the anti-competitive behavior of the company. In particular, Apple requires from suppliers to sell a certain number of iPhone, putting pressure on it.

"[S]ome of Apple’s competitors complain that the big purchases Apple requires from carriers strongly pressure them to devote most of their marketing budgets to the iPhone, leaving little money to promote competing devices, said an executive at one of Apple’s rivals, who declined to be named to avoid jeopardizing carrier relationships.

Apple’s practice of telling carriers how many phones they must sell and threatening to penalize them shows just how powerful the iPhone has become as a bargaining chip. Other manufacturers typically allocate fewer handsets to each carrier than they estimate it can sell to ensure that there is little, if any, leftover inventory, an executive at one rival handset maker said."

Of course, providers are not required to distribute the iPhone, but the demand of clients on the device means that most suppliers almost has no choice and must agree to the terms of the Apple to stay competitive in the market.

The European Commission has not yet begun an official investigation of the contract terms, and it is unclear what will be the next steps, said Antoine Colombani.