December 19, 2008 by James Oliver
Apple’s exclusivity deal with France Telecom has been suspended by a French competition Watchdog which claims that the accord is a “serious” threat to competition between mobile phone networks.
The deal was originally set to last five years and meant that buying an iPhone would require a contract with France’s top network, Orange. The phone is hugely popular in France, as it is everywhere else, and was set to make France Telecom a lot of money. However, the French watchdog decreed that since so many people want iPhones, it is anti competitive to have just one network on which the device can be used.
Orange’s biggest rivals, Bouyges Telecom and SFR are said to be thrilled with the decision and plan to set up distribution contacts with Apple in order to offer the device to their customers in time for the Christmas rush.
Predictably France Telecom are less happy and plan to appeal the decision, claiming that it “places France in a radically different position [to the rest of Europe]” in a statement released this week. They do have a point there, Apple enjoy exclusivity deals in Germany, Spain, and Britain, where iPhones are only available with a specific long term phone contract.
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