Skip to main content

Apple fined a record $1.23 billion in France over unfair sales practices

France’s antitrust agency has fined Apple a record $1.23 billion over unfair sales practices. The French Competition Authority found the Cupertino, California-based company guilty of abusing its economic position to force retailers into signing contracts that limited competition and revoked their official right to determine prices of Apple products and services other than the iPhone.

Recommended Videos

Under the Apple Premium Reseller program, which includes a chain of stores that exclusively sells Apple products, Apple required each distributor to charge a set price — a move that the watchdog believed sterilized the wholesale market. The French authorities also found Apple reserved stocks in times of heavy demand for its own offline and online stores and restricted supplies to third-party retail partners.

France’s antitrust law dictates that companies cannot be partial to their own sales channels and must treat distribution partners equally. It also states that retailers should be able to determine prices based on their position and goals. On top of that, the Apple Premium Reseller contract specifies exactly how many units of each product are allocated to a retailer — another violation of France’s rules against anticompetitive practices.

“During this case, the authority deciphered the very specific practices that had been implemented by Apple for the distribution of its products in France (excluding iPhones), such as the iPad. Given the strong impact of these practices on competition in the distribution of Apple products via Apple premium resellers, the authority imposes the highest penalty ever pronounced in a case (€1.24 billion). Finally, the authority considered that, in the present case, Apple had committed an abuse of economic dependence on its premium retailers, a practice which the authority considers to be particularly serious,” said Isabelle de Silva, president of the French Competition Authority, in a statement.

Along with Apple, two of its wholesale partners, Tech Data and Ingram Micro, were fined $84.7 million and $69 million, respectively, for partnering with Apple to practically operate a “cartel” within the APR distribution network and prevent other distributors to compete on price.

An Apple spokesperson called the decision “disheartening” in a statement to CNBC, and said it “relates to practices from over a decade ago and discards 30 years of legal precedent that all companies in France rely on with an order that will cause chaos for companies across all industries. We strongly disagree with them and plan to appeal.”

France’s decision is the result of an investigation that first kicked off nearly 8 years ago when the country’s biggest Apple seller, eBizcuss, collapsed and subsequently filed a lawsuit against Apple for holding back inventory after the retailer’s CEO publicly accused the company of anticompetitive behavior. Earlier this month, Apple also agreed to pay up to $500 million to settle a lawsuit over quietly throttling older iPhones in the United States.

Shubham Agarwal
Former Digital Trends Contributor
Shubham Agarwal is a freelance technology journalist from Ahmedabad, India. His work has previously appeared in Firstpost…
The Apple Watch sales ban is about to start again
A person wearing the Apple Watch Series 9, showing the side of the watch.

Apple has experienced another setback in its bid to keep the Apple Watch Series 9 and Ultra 2 smartwatches on U.S. shelves. The U.S. Court of Appeals for the Federal Circuit has ruled that Apple should stop selling the two aforementioned smartwatches over a patent dispute related to the blood oxygen measurement feature.

The company had requested that the court pause the sales ban of its latest smartwatches, reports Bloomberg. The court has declined, ordering Apple to stop selling these smartwatches during a ban period that “could last a year or more.”

Read more
Apple may face ‘severe’ iPhone 15 shortage over production issue, report says
The Apple logo on the iPhone 14 Pro Max.

Hoping to get your hands on an iPhone 15 Pro or iPhone 15 Pro Max when the new phones come out in the fall? Well, you may be in for a wait.

Apple is experiencing production issues caused by a new manufacturing process designed to significantly reduce the size of the bezel around the display, according to a report from The Information on Thursday.

Read more
Surprise Apple sale brings big discounts on iPad and Apple Watch
Data from a workout showing on the screen of the Apple Watch Series 8.

There are plenty of great discounts on Apple devices over at Amazon right now. That means substantial price cuts on the latest Apple Watch range as well as plenty of iPads too. If you're keen to learn more, we're here to help. We've picked out some of our favorite Apple deals going on right now. Check them out below to see how you can save big on highly sought-after devices.
Apple Watch SE (2nd Gen) -- $220, was $249

The Apple Watch SE (2nd Gen) is a marvel at this price. Easily one of the best smartwatch deals, it covers everything you could need. You gain comprehensive yet easy-to-use fitness tracking thanks to Apple's Activity Rings system and steady stream of challenges and rewards. It's fast too thanks to having the latest processor. Despite that, you still get to enjoy a two-day battery life with the watch easily comfortable to wear all day long. It lacks the ECG and blood oxygen sensors of the Series 8 along with the always-on display, but that won't be an issue for everyone. The key thing is you get an excellent smartwatch at a great price.

Read more