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Apple ordered to end exclusive iPhone deal with France's Orange

Apple must immediately cease its exclusive relationship with France Telecom's Orange and allow other local carriers to offer the iPhone to its subscribers, the French competition counsel ruled Wednesday.

On September 18th, France's third largest mobile operator Bouygues Telecom filed a complaint with the regulator, arguing the deal between Apple and its larger rival violates local freedom of competition and pricing laws.

The ruling handed down this week is reportedly a temporary and precautionary measure while the counsel continues to investigate the merits of Bouygues' claims.

In addition to being ordered to open up the iPhone to other French carriers, Apple and France Telecom are also prohibited from entering into any other exclusive agreements for future iPhone models during the precautionary period.

The French competition counsel said Apple's exclusive arrangement with Orange poses a serious and immediate threat to competition in the wireless sector and causes consumers to incur hefty and unjust fees should they attempt to switch providers. (A copy of the 48 page ruling can be seen here [PDF] in French.)

Representatives for Bouygues Telecom applauded the counsel's decision and said the carrier is looking forward to offering the iPhone to its customers in the near future.

France Telecom plans to appeal the decision.

102 Comments

timusca

said about 14 years ago

I don't see why this is anti-competitive... other carriers have other cell phone. You don't go telling Sony they're illegally offering God of War, do you? Or Microsoft offering Halo?

These companies should NOT be forced into allowing their hardware on other carriers anymore than gaming companies should have to offer their software for other consoles.

ltcommander.data

said about 14 years ago

I guess this and the OS X EULA lawsuits go back to the core issue of whether you are required to sell to everyone or whether you can choose who you want to sell to. Personally I think distribution rights should still hold in this case. Apple doesn't have a monopoly in the smartphone market much less the whole cellphone market so it really isn't anti-competitive. I'm pretty sure there have been other phones with exclusivity arrangements too. It's a valid marketing tactic.

rot'napple

said about 14 years ago

Hey France, you want some cheeze with that "whine"?!

monstrosity

said about 14 years ago

bloody socialists dont know the meaning of the word competition.
All this does is hinder innovation and rule out a business model which in my opinion works better. So rather than the industry competing with similar business model to Apple, the industry cries like a little girl, and Apple are forced to use the outdated model.

And then the whole thing stagnates, progression halted, but thats socialism for ya.

virgil-tb2

said about 14 years ago

Personally, I absolutely love it when some old-fashioned right-wing capitalist company gets blind-sided by decent modern European laws designed to give the consumers a chance for a change.

Liberté, égalité, fraternité!

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