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Technology / Software

Apple allegedly signed preferential contract with operators for iPhone

Apple has been blamed of using its clout to secure preferential terms from mobile operators seeking to offer the iPhone, which said to have stifled competition from rival phone makers, according to an unnamed ex-senior executive at a European Operator.

According to a detailed description given to the Guardian of an alleged three-year contract between Apple and the operator, some employees working for European operator were worried about the legality of the contract, while were ignored as the firm required access to Apple’s iPhone.

"The marketing people were filled with joy about getting the iPhone," unnamed executive said.

"Our second thoughts from a legal point of view were overruled by the marketing people."

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The disclosures follow the European commission’s consideration to whether to take action over Apple’s contracts with operators.

Reports claim that Apple used the contract to declare the maximum price a consumer should pay and the retail price was less compared to operator’s payment to own the iPhone, while the difference was met through a subsidy from the operator.

However, Apple reportedly claims that its contracts fully meet the requirements of local laws wherever it has been doing business, including the EU.

The European Commission anticipates that Apple’s contracts may have limited support paid by operators to give to other manufacturers.


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CBR Staff Writer

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