Regulators in France have put a stop to France Telecom’s Orange being the only carrier selling Apple’s iPhone in France. The Counseil de la Concurrence, the French Council on Competitiveness, acted after another carrier, Bouyges Telecom, filed a complaint.
The council asked Apple to cease its exclusivity deal with Orange and allow other carriers to offer service for the iPhone while regulators further investigate. Orange offers the iPhone in several countries in Europe, the Middle East, and Asia, and had been exclusively selling the iPhone in France since July.
Orange was offering the 8GB iPhone 3G for 149 Euros (US$214.54) with a subscription and the 16GB iPhone 3G for 199 Euros (US$286.54). After one year of its exclusive partnership, Orange would have sold more than 150,000 first-generation iPhones and more than 450,000 3G iPhones, the company said.
Orange said the regulators’ decision places France in a different situation compared to other countries such as Germany, the United Kingdom, Spain and the U.S., which allow exclusive agreements. The company said the decision is a huge blow since its exclusivity in France was based on an industrial partnership in which the company has invested heavily.
The decision also questions partnerships between mobile carriers and handset manufacturers, according to Orange. By limiting exclusivity to three months, carriers will no longer be able to justify investments such as Orange made to launch Apple’s iPhone.
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.
Companies need to be sure they are doing their due diligence before doing business in other…