Apple Sued For $55.3 Million By French Agency

It does look as though the folks over at Apple are in the limelight again, in terms of yet another legal tussle, as a French agency has desired to sue the iPhone maker for $55.3 million concerning the issue of illegal carrier contracts. The DGCCRF, which happens to be France’s version of a competition, consumer, and fraud agency, were the ones who filed this particular suit against Apple with the Commercial Court of Paris.

The accusation thrown in the direction of Cupertino? It seems that Apple has allegedly enforced illegal contracts with France’s mobile operators. In the suit, it is touted that Apple’s contracts with the local carriers happen to be unbalanced – in Apple’s favor, of course, in a rather significant manner. In fact, the DGCCRF also cites that there are at least 10 clauses which can be found in the contracts which Apple imposes with carriers, which happen to be illegal as well.

Via such clauses, the carriers are then forced to purchase a minimum number of iPhones across the time span of three years, to fork out dough for Apple ads, not to mention subsidize in-warranty iPhone repairs, as well as enable Apple to make use of their patents and brand. Should there be a ruling in DGCCRF’s favor, then Apple will have to fork out €14 million to SFR, €11.6 million to Orange, €8.2 million to Free Mobile, and €6.7 to Bouygues Telecom – not to mention €8 million in fines. If so, it is a drop in the ocean for Apple’s coffers, but might be a perilous precedent for Apple in other parts of the world.

Edwin Kee
Categories: Apple, Cellphones
Tags: Legal