I believe than any formula decreases the bioavailability of iron from
breastmilk. In fact I think that any food changes it. That is why anemia in
breastfed infants is a controversial topic. It is very rare in exclusively
breastfed infants- of which there are relatively few in the U.S. with formula
supplementation and early intro of solids(<6mo). Therefore I would argue that
when a baby is supplemented it should be  with iron fortified formula.
On the other hand there is a theory that excess iron can bind to tranferrin
and changing its anti-infective properties.

Mary Murphy MD

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