EU Apple Antitrust: Why are EU Antitrust Regulators Really Watching Apple ?

EU Apple Antitrust: Earlier today, we brought you a story about EU antitrust regulators keeping a close eye on Apple Inc. (NASDAQ:AAPL). While regulators were sure to say that they have not received any formal complaints about the Cupertino-based company, it is safe to say that they are under a tight watch for the time being. After all, any company as powerful as Apple is sure to be under scrutiny at all times.

A Leading Company Cheaper Than 90% Of Blue Chips... And It Recently Bounced 12%Apple Inc. (NASDAQ:AAPL) may be the smart money’s second favorite publicly traded company but hedge funds have started dumping the Cupertino-based company in favor of a surprising financial stock (see which stock hedge funds are buying like crazy).

If you are unsure of the basics of what is going on, here is an excerpt from our article earlier today:

“According to a spokesman for the European Commission, EU antitrust regulators are keeping a close watch on Apple Inc. (NASDAQ:AAPL) in regards to the Cupertino-based company’s distribution of its iPhone and iPad devices.”

With all of this in mind, you may be wondering why EU antitrust regulators are closely monitoring the company. This time around, we are going to take a closer look at the root cause of the issue.

Do you remember this story from last month: Leap Wireless Not Happy with Apple Inc. (AAPL) iPhone Sales

CNN did a great job of tying into this story, talking about Leap’s contract with Apple Inc.

In short, the company signed a contract with Apple, agreeing to buy $800 million worth of the smartphone over the next three years.

Unfortunately, things did not work out for Leap. Things are so bad that the company has been left with roughly 160,000 unsold iPhones as the end of the first contract year closes in.

While EU antitrust regulators don’t have much to say about what is going on with this relationship, based in the United States, they are concerned that this type of deal could make its way to their territory in the future.

The New York Times article that we discussed earlier today, sums up the situation by saying:

“Carriers are petrified at the thought of not having the smartphone because it remains a huge hit with the public, driving waves of customers to their stores, especially in the months after the latest models are introduced and heavily advertised.”

It is safe to say that some competitors are worried about Apple Inc. (NASDAQ:AAPL) requiring carriers to purchase so many devices, meaning that they have to devote most of their time and resources to the iPhone.

What does Apple feel about all this? Here is what Natalie Kerris told the New York Times:

“Our contracts fully comply with local laws wherever we do business, including the E.U.”

What are your thoughts on this story? Do you feel that Apple is doing anything wrong? Share your opinion in the comment section below.

Check back here for more updates on EU Apple Antitrust.

DISCLOSURE: I have no positions in any stock mentioned.

For more news stories, visit these pages:

Apple Inc. (AAPL) can’t be Trusted in the Courtroom?

A Political Bill for Increased Apple Inc. (AAPL) iPad Usage on Airplanes

Apple Inc. (AAPL) Wins Patent Lawsuit Against Samsung in UK

blog comments powered by Disqus
Insider Monkey Headlines
Insider Monkey Small Cap Strategy
Insider Monkey Small Cap Strategy

Insider Monkey beat the market by 52 percentage points in 24 months. Our beta is only 1.2 (don't click this link if beating the market isn't important to you).

Lists

All In: The 7 Richest Poker Players in the World

Abracadabra: The 10 Best Magicians in the World

The 10 Richest Asian Countries in the World in 2014

Eyes in the Sky: 10 Things You Need to Know About Drones

Rising Stars: The 6 Best Silicon Valley Startups

Military Muscle: The 5 Most Advanced Armies in South America

All that Glitters: The 7 Most Luxurious Jewelry Brands in the World

5 Things You Didn’t Know About ISIS but Should

Empowering Your Money: The 5 Best Energy Stocks to Invest In

The 11 Best Android Apps You Can’t Get on iOS

The 10 Most Important International Conflicts in 2014

Mood Enhancers: The 20 Most Uplifting Songs of all Time

Lover Beware: The 8 Countries that Cheat the Most

Breath of Fresh Air: The 25 Countries with the Best Air Quality on the Planet

Singles Beware: The 8 Worst Mistakes Made on First Dates

Healthy and Happy: The 10 Countries with Lowest Healthcare Costs

The 6 Best Company Team Building Activities to Build Workplace Camaraderie

Ships Ahoy: The 10 Busiest Shipping Ports in the World

10 Productivity Tips to Save You Time and Help You Do More With Less

Grab a Bite: The Most Popular Fast Food Restaurants in America

Friday Night Thirst: The 10 Most Popular Cocktails in the World

The 6 Greatest Unsolved Mysteries We May Never Figure Out

7 Useless Products You Never Should’ve Bought

The 5 Reasons Why You’re Single and Miserable

The 7 Most Addictive Foods in the World We Can’t Stop Eating (Even Though We Should)

5 Amazing Places You Can Swim with Dolphins

The Top 7 Most Livable Countries In The World

The 10 Most Expensive Baseball Cards Ever Pulled From A Pack

The 5 Easiest Second Languages to Learn for English Speakers

Silver Spoon: The 6 Richest Families in the World

The 20 Countries with the Largest Prison Populations in the World

The Top 10 Richest Actors in the World

The 10 Best Airline Stocks to Invest In Before They Fly Too High

Burger Kings: The 10 Most Expensive Burgers in the World

The 10 Most Ethnically Diverse Countries in the World

The 10 Most Exclusive Credit Cards in the World

The 10 Most Expensive Cruise Ships in the World

The 10 Fastest Supercomputers in the World

The 10 Best Countries for Doing Business 2015

6 Most Expensive Fruits In The World

10 Worst Airlines in the World

The 10 Biggest Tax Havens in the World to Stash Your Money

The 15 Most Murderous Countries in the World

10 Largest Colleges in the World: Bigger Isn’t Always Better

Comedians in Cars Getting Coffee: The 6 Comedians Seinfeld Needs to Interview

Easy Money: The 10 Most Successful Investors in the World Today

The 10 Most Deadly Diseases in the World Today

The 5 Most Expensive Luxury Motorhomes in the World

20 Largest Stock Exchanges in the World

6 Richest Painters In The World 2014

Subscribe

Enter your email:

Delivered by FeedBurner

X

Thanks! An email with instructions is sent to !

Your email already exists in our database. Click here to go to your subscriptions

Insider Monkey returned 47.6% in its first year! Wondering How?

Download a complete edition of our newsletter for free!