Regulators are considering taking action against Apple Inc. over possible antitrust violations that may have helped it dominate Japan's smartphone sales, government sources said, a move that could damage the company's profit margins in one of its most profitable markets.

In a report published last month, the Fair Trade Commission said NTT Docomo, KDDI Corp. and SoftBank Group were refusing to sell older surplus iPhone models to third-party retailers, thereby hobbling smaller competitors.

Apple was not named in that report, but two senior government sources said regulators were also focusing on Apple's supply agreements with all three carriers.