France: Apple Must Hang Up On Exclusive iPhone Deal
Apple must end its exclusive iPhone sales agreement with France Telecom, a government agency ruled Wednesday. The 2007 deal created a “serious and immediate” threat to broader competition, according to France’s competition regulator.
The order could allow the No. 3 French carrier Bouygues Telecom SA to begin selling iPhones soon. For its part, Orange announced it would appeal the measure. The carrier said the decision puts France in a “radically different situation” than Germany, the U.S., Britain and Spain, where Apple has exclusive distribution deals.
The French Competition Council, which took up the Bouygues claim in September, said Apple’s five-year agreement with Orange was “clearly excessive.”
Since the deal with Apple began in 2007, Orange has sold 450,000 iPhone 3G handsets and 150,000 original iPhones.
The French Competition Council said it could take up to 15 months to finish investigating the Bouygueus claim.
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Ed Sutherland is a veteran technology journalist who first heard of Apple when they grew on trees, Yahoo was run out of a Stanford dorm and Google was an unknown upstart. Since then, Sutherland has covered the whole technology landscape, concentrating on tracking the trends and figuring out the finances of large (and small) technology companies.
