Apple Dodges Two Antitrust Investigations, Hugs and Makes Up with EU

Posted 09/27/2010 at 6:02am | by Paul Lilly

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The European Union is notorious for its heavy handed fines to mega corporations who run afoul of the law, so it's easy to see why Apple opted to reverse two policies that recently drew the regulatory agency's eye.

Apple came under scrutiny earlier this year over its iPhone warranty policy within the EU, along with mandates over what development tools and programs could be used to code Apple-compatible apps. But with Apple making amends to its iPhone warranty, the EU is giving the Cupertino company a pass.

"Following today's announcement, Apple is no longer enforcing the 'country of purchase' rule within the EU/EEA and has appointed independent Authorized Service Providers to offer cross-border iPhone warranty services in those Member States where Apple does not directly take charge of repairs," the EU said in a statement. "Earlier on this month, Apple also announced having removed restrictions previously introduced on the development tools used to create iPhone apps, restoring the use of third-party layers and so giving developers more flexibility."

Apple's policy reversals likely saved the company from hefty fines. In 2008, the EU nailed Microsoft with a then-record setting fine of $1.35 billion "for defying sanctions imposed for antitrust violations," and then set another record when the agency smacked Intel for $1.45 billion in 2009 on similar charges.

"Apple's response to our preliminary investigations shows that the Commission can use the competition rules to achieve swift results on the market with clear benefits for consumers, without the need to open formal proceedings," the EU added.