Apple, regulator reach iPhone deal

Apple and Israel's cellular operators will amend their iPhone contracts.

The dispute between the Antitrust Authority, Apple Inc. (Nasdaq: AAPL), and the cellular operators over the iPhone has been settled. Sources inform ''Globes'' that Apple and Israel's cellular operators last night reached understandings to amend their iPhone contracts, and that the Antitrust Authority will therefore not block them.

The sources added that the Antitrust Authority mergers committee met last Thursday and accepted recommendations by Antitrust Authority director general Ronit Kan not to restrict the marketing of iPhones, subject to minor changes in the contracts between Apple and the cellular operators.

The problem over the marketing of the iPhone in Israel arose because Apple dictates certain identical conditions to all the cellular operators with which it works, effectively creating a cartel. One of these issues related to the joint marketing campaigns for the iPhone, because Apple dictates the conditions requiring a single line for these campaigns. These issues have now been resolved.

Sources close to the cellular operators told "Globes" that Apple was considering petitioning the Restrictive Trade Practices Tribunal to block disclosure of the settlement's terms.

Apple was represented in the negotiations by Tadmor & Co. partner David Tadmor, Kan's predecessor at the Antitrust Authority, and associates Shai Bakal and Ragit Moshe

Published by Globes [online], Israel business news - www.globes-online.com - on October 26, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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