Apple told to end exclusive iPhone deal in France
PARIS (AP) — Apple Inc. must allow operators other than France Telecom's Orange SA to sell its popular iPhone mobile handset, the French competition regulator ruled Wednesday.
The decision overturns an exclusive arrangement with Apple that has allowed Orange to be the iPhone's exclusive distributor in France since the phone was launched last year.
Orange rival Bouygues Telecom SA, the No. 3 mobile operator in France, filed a complaint with the regulator over the arrangement in September. The regulator said Wednesday's order was a protective measure while it continues an investigation into the merits of Bouygues' complaint.
In a statement, the competition regulator said Apple's exclusive arrangement with Orange posed a "serious and immediate threat" to competition in the mobile telecommunications sector and increased costs for mobile phone users who sought to change operators.
Bouygues Telecom welcomed the ruling and said it hopes to begin selling the iPhone shortly.
Orange said it would appeal the decision and said it put France in a "radically different" situation than in Germany, the U.S., Britain and Spain.
Orange began selling Apple's iPhone in November 2007, and as of this month had sold 450,000 3G iPhones and 150,000 first-generation iPhones, the company said.
The decision overturns an exclusive arrangement with Apple that has allowed Orange to be the iPhone's exclusive distributor in France since the phone was launched last year.
Orange rival Bouygues Telecom SA, the No. 3 mobile operator in France, filed a complaint with the regulator over the arrangement in September. The regulator said Wednesday's order was a protective measure while it continues an investigation into the merits of Bouygues' complaint.
In a statement, the competition regulator said Apple's exclusive arrangement with Orange posed a "serious and immediate threat" to competition in the mobile telecommunications sector and increased costs for mobile phone users who sought to change operators.
Bouygues Telecom welcomed the ruling and said it hopes to begin selling the iPhone shortly.
Orange said it would appeal the decision and said it put France in a "radically different" situation than in Germany, the U.S., Britain and Spain.
Orange began selling Apple's iPhone in November 2007, and as of this month had sold 450,000 3G iPhones and 150,000 first-generation iPhones, the company said.
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