Apple faces anti-competition investigation in EuropeMay 27, 2013 - 12:13 AMT PanARMENIAN.Net - Apple faces potential anti-competition investigation in Europe, with claims that the European Union is quizzing carriers on whether the iPhone maker strong-arms deals and limits some devices in ways that could eventually spawn antitrust sanctions, SlashGear reports. The EU has been sending out a nine-page questionnaire, collecting Apple tactics information following a number of “private complaints” from operators. Among the greatest concerns is that Apple has insisted on “most favored supplier clauses” which forces carriers to give the Cupertino firm the best deal. For instance, it’s alleged that Apple demands “the same or better terms” for iPhone subsidies and sales incentives as any other smartphone carriers offer; part of the questionnaire reportedly concerns how those demands are communicated, for instance whether they are part of the written contract or instead expressed in other ways during negotiation. The EU also questions whether Apple insists on a minimum number of iPhone orders before it will finalize a deal. Apple’s approach to marketing budgets has also been highlighted in the fact-finding process, with questions around how much carriers are required to spend during the launch of new models and over the lifespan of devices. However, a second aspect of the early inquiry concerns how Apple approaches 4G networks in Europe, and iPhone support for them. “There are also indications that certain technical functions are disabled on certain Apple products in certain countries in the EU/EEA” the questionnaire states. “If the existence of such behavior were to be confirmed, it might constitute an infringement of [antitrust law].” It’s unclear exactly what sort of limitation the EU is referring to at this stage, though it supposedly could be either technical or contractual in nature. Currently, the iPhone 5 only supports certain LTE networks, though that’s more down to the issues of supporting the multitude of bands carriers have used for their 4G deployment. The EU has not commented publicly on the questionnaire, which is an early-stage investigation and may not reach official inquiry stage. Before that could happen, the Commission would need to be convinced that Apple holds a market-dominance position in Europe, SlashGear says. Apple has said that it complies fully with European law with its contracts. It’s not the first time Apple and its peers have made headlines in recent weeks over allegations of inappropriate business practices. Last week, a U.S. Congressional committee claimed the firm was using incredibly convoluted financial systems – including setting up numerous offshore subsidiaries registered to “top officials” at Apple but with no employees – to shave an estimated $74bn from its tax bill over the course of four years. Meanwhile, Google is under similar scrutiny in the UK and Europe, amid claims that its UK operation funnels money through a more tax-effective Irish division. The search giant has been accused of “immoral” handling of its tax obligation by UK government officials, something chairman Eric Schmidt has strongly denied. Top stories Yerevan will host the 2024 edition of the World Congress On Information Technology (WCIT). Rustam Badasyan said due to the lack of such regulation, the state budget is deprived of VAT revenues. Krisp’s smart noise suppression tech silences ambient sounds and isolates your voice for calls. Gurgen Khachatryan claimed that the "illegalities have been taking place in 2020." Partner news Most popular in the section | Ameriabank's Trade Finance portfolio enriched with four prestigious awards from EBRD and IFC Ameriabank received the awards from international financial institutions in recognition of its trade finance operations. Armenian Economy Minister to make trip to UAE May 20-22 A delegation led by Minister of Economy Gevorg Papoyan will travel to the UAE capital of Abu Dhabi on May 20-22 Armenia Security Council chief traveling to Qatar Secretary of the Security Council of Armenia Armen Grigoryan will travel on a working visit to Qatar. Pillars installed in Armenian border village of Kirants In the Armenian village of Kirants, three border markers have been installed, and border guards stand next to them. |