France tells Apple to end exclusive iPhone deal

Posted on 17 Dec 2008 at 12:24

The French competition regulator has ordered Apple to end its exclusive iPhone deal with French carrier Orange.

The regulator has ruled that Apple’s contract with Orange poses a “serious and immediate threat” to competition and increases the cost to consumers who want to change operator.

"Orange's exclusive iPhone has introduced a new degree of rigidity in a market that already suffers from a deficit in competition," the ruling says.

The ruling was in response to a complaint by Bouygues Telecom, France’s third most popular carrier. The regulator said it was a preliminary decision, pending further investigation.

If the order is upheld then it is may to see a significant increase in the price of the handset. Orange is currently selling it from €99 plus contract, but in neighbouring Belgium, where the law dictates that the iPhone is sold unlocked, an 8GB model costs €525 without a contract.

Author: Simon Aughton

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