French agency sues Apple for $55.3 million over illegal contracts with mobile operators

August 30, 2016


The France’s competition, consumer, and fraud agency (DGCCRF) has filed suit against Apple with the accusation that the creator of the iPhone is forcing French mobile operators to sign disadvantageous contracts.

According to the French agency contracts with Apple are more beneficial for the technology giant than for operators. The regulator claims that no less than 10% of the clauses in them are illegal.

These clauses oblige mobile operators to buy a certain number of the iPhone, three years to pay for advertising of Apple, to subsidize repair phones even allow the US giant to use them patents and brands.

If the court decides that the contracts are illegal and unfair, then Apple may be forced to pay the sum of €48.5 million. Out of this, €14 million would go to SFR, Orange would get €11.6 million, Free Mobile would be awarded €8.2 million, and Bouygues Telecom would get €6.7 million. On top of this, Apple would also be forced to pay €8 million in fines.

According to lawyers, if Apple loses this case, it would set a dangerous precedent and prompted other countries to sue the company for the same issues. Until now Apple did not comment on the case officially.

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