Unlike in other countries where Apple has an exclusive deal with one of the phone operators to sell and provide service for the iPhone 3G, in France the regulators said “Non!â€. Then, 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.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.
The Council’s ruling is reportedly temporary, precautionary and “pending a decision on the merits” of the issue. Meanwhile, the Council will continue to investigate the situation. The measure not only requires Apple to open the iPhone to other French mobile phone operators, but also bars Apple and France Telecom to enter any other exclusive agreements for future iPhone models. Since the deal with Apple began in 2007, Orange has sold 450,000 iPhone 3G handsets and 150,000 original iPhones.
Orange said the regulators’ decision was made without any in-depth examination of the situation. The decision may also impact manufacturers, subcontractors and software providers who are already feeling the economic impact, according to Orange.
Orange acknowledged the council’s decision, but said it will go to the Court of Appeals in Paris.
