Apple Faces Preliminary Competition Probe From EC

Apple is being closely monitored by the European Commission over its sales tactics and agreements with operators on Apple devices.

The European Commission has initiated an enquiry last week into the business agreements that Apple has with mobile operators in Europe as it suspects they are giving favorable deals to Apple devices, reports the Financial Times.

The Commission has sent out a questionnaire to the mobile operators asking whether Apple forced them to buy a minimum number of iPhones as well as provide Apple with the same if not better subsidies that they offer to other smartphone companies. The enquiry, prompted by complaints raised by some European mobile network operators, is at a preliminary stage.

"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," the questionnaire states, reported by FT.

The questionnaire also asks if Apple has restricted any technical functions in any of its devices, which can result in constituting "an infringement of antitrust law."

Before initiating a formal investigation, the European Commission wants to be sure of Apple's dominance over the European smartphone market. But given the strong position that Samsung's Galaxy handsets enjoy in the European markets, it would be a close call to make.

Apple, on its part, says its contracts fully comply with EU laws, FT reports.

The mobile network operators can reply to the questionnaire until June 17, 2013.