BT Group, the owner of the largest mobile operator in the U.K., EE network, has lodged a complaint against tech behemoth Apple. The issue revolves around Apple’s use of eSIM technology, which BT Group fears may undermine its business and hamper competition. This information was conveyed to the Competition and Markets Authority (CMA) as reported by The Telegraph.

BT Group has urged CMA to factor in the possible risk of disintermediation in the telecom industry tied to eSIMs. This is an area where handset manufacturers like Apple could wield their market dominance. BT Group is concerned that its role in the purchase process could be sidelined by companies such as Apple who use eSIMs to foster a more direct bond with customers, and possibly roll out their own Mobile Virtual Network Operator (MVNO) services.

This grievance aligns with the CMA’s ongoing scrutiny of the mobile ecosystems of Apple and Google, encompassing app stores and browsers, to ascertain whether they are manipulating their market prowess. If it’s determined that Apple or Google are abusing their position, modifications may be needed to make app stores and app functions more accessible, and to simplify in-app payment processes.

While eSIMs are not explicitly mentioned in the CMA’s documents, BT Group is adamant that this technology is part of the investigation into mobile ecosystems and should not be disregarded.

As of 2022, all Apple iPhone models in the U.S. are eSIM-only, but in the U.K., a physical SIM card is still an option for the newest iPhone 16 models. However, this could change in the future. For instance, the anticipated Apple iPhone 17 Air is predicted to only support an eSIM, which could help slim down the device. If this model is launched globally, it could give rise to the situation that BT Group is wary of.

All major carriers in the U.K. support eSIM, but not all MVNOs do. Interestingly, when EE exclusively launched the Motorola Razr (2020), it was an eSIM-only device. BT Group took over EE in 2016.