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EU Investigates iPhone, iPad Distribution

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EU regulators are looking into complaints from a number of carriers on possible antitrust violations in iDevice distribution contracts Apple draws with carriers, The New York Times and Reuters report.

iPhonesAccording to anonymous sources a group of European carriers have already submitted information on their contracts with Apple to the European Commission, even if they still have to file a formal complaint.

The EC confirms the reports with a statement saying "“we have been contacted by industry participants and we are monitoring the situation, but no antitrust case has been opened."

The complaints involve the launch price regulation and hefty subsidies Apple commands on operators in order to offer customers discounts on smartphones in exchange of 2-year contracts. However Samsung's beating Apple as top smartphone maker appears to have eroded the iPhone maker's advantage in negotiating the best subsidies and marketing support.

"Apple insists on a certain level of subsidies and marketing for the iPhone," one source tells Reuters.

In reply Apple states "Our contracts fully comply with local laws wherever we do business, including the EU."

This is not the first time Apple fell afoul of EU antitrust regulators-- 3 years ago the company was the target of investigations over iPhone business practices.

The investigation was dropped after Apple started allowing cross-border repair services and eased iPhone app restrictions.

There is no mention of what the EC will do next, but it has the power to issue fines of up to 10% of most recent global annual fines if a company is found guilty of anti-competitive behaviour.

Go Europe Weighs iPhone Sale Deals With Carriers for Antitrust Abuse (The NY Times)

Go EU Regulator Monitors iPad and iPhone Distribution (Reuters)