Apple Online Store “U.S. regulators probing wireless- phone contracts will focus on markets where Apple Inc.’s iPhone and Palm Inc.’s Pre aren’t available to consumers, the chairman of the Federal Communications Commission said,” Todd Shields reports for Bloomberg. “The agency also will consider if innovation is promoted or hindered by exclusive arrangements such as those that limit the iPhone to customers of AT&T Inc. and the Pre to Sprint Nextel Corp. subscribers, Genachowski said.”

MacDailyNews Take: Judging by the anemic sales figures being bandied about, reports of copious amounts sitting of shelves going nowhere, and reports of quality issues and high return rates, nobody much cares about the Palm Pre, FCC. Insert the iPhone competitor du jour, if you feel you must. Nine months ago it would have been “RIM’s Storm” instead. That one didn’t pan out either.

Shields continues, “An AT&T executive told a June 17 hearing the deals spur innovation and help lower prices. Verizon Wireless said this month that new deals with handset makers will last no longer than six months, down from one to two years for most contracts.”

MacDailyNews Take: Verizon Wireless. The company without the iPhone. Because they blew it the first time. Sounds like they’re trying to fix their mistake via government intervention, doesn’t it?

Shields continues, “‘Promoting competition is absolutely a main function of the FCC,’ said Genachowski. He took office June 29 as the Obama administration’s choice to head the independent agency that sets rules for telephone, cable and broadcast companies… Genachowski attended Harvard Law School with President Barack Obama and helped shape his technology agenda.”

Full article here.