France fines Apple a record $1.2 billion over third-party wholesalers deals

Apple was fined a record 1.1 billion euros ($1.2 billion) by French antitrust regulators after the Cupertino Colossus was found to have anti-competitive agreements with two favored distributors. The French agency, Autorité de la Concurrence, said Apple conspired with Tech Data and Ingram Micro to thwart wholesale competition for non-iPhone products such as Macintosh computers. Tech Data and Ingram Micro were fined 76.1 million euros and 63 million euros, respectively.

France fines Apple. Image: Apple logoGaspard Sebag for Bloomberg:

“Apple and its two wholesalers agreed to not compete against each other and prevent resellers from promoting competition between each other, thus sterilizing the wholesale market for Apple products,” Isabelle de Silva, head of the French agency, said in a statement on Monday.

The French regulator said the Apple case was prompted by a complaint lodged by eBizcuss, an Apple premium reseller, in 2012.

Antitrust officials say Apple’s actions froze market shares and prevented competition between different distribution channels for the brand. Apple allegedly took measures to force premium resellers to provide the same prices as it did in Apple Stores and on its website.

The tech company also created an economic dependency for premium resellers, France’s Autorité de la Concurrence said. The resellers were contractually obliged to sell nearly only Apple products yet at times were not supplied with new products even when they were available on Apple’s website or in its stores.

MacDailyNews Take: According to the report, Apple said the French decision “will cause chaos for companies across all industries” and vowed an appeal.

9 Comments

    1. Margaret Thatcher said “Socialism is fine, until you run out of other people’s money to spend”. They might actually try working a little more and holding their hand out a little less.

  1. Who knew that MDN would be so proud to support Xenophobes Anonymous. Disgusting comments by the usual pricks.

    When a country like, say the USA, for example, unilaterally threatens huge taxes on corporations due to unfair business practices, say Microsoft, the peanut gallery here was singing a different tune.

    1. “…by the usual pricks.”

      Not necessarily a bad attribute. It depends. On the other hand, as you delineated…

      With Trump giving everyone demeaning nicknames I was asked by a friend what I would call him.

      I immediately said plain as day… “Dildo Don”.
      “‘Cause he’s a prick without a heart.”

  2. Apple should simply pull out of France and refuse to do business any longer with French people. And of course they should tell the French government to stick the fine up their smelly French ass.

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