In an official press launch, L’Autorité de la Concurrence mentioned that the advantageous is the results of some “very specific practices” carried out by Apple for the distribution of its merchandise in France. According to the company’s president, Isabelle de Silva, “First, Apple and its two wholesalers agreed not to compete and prevent distributors from competing with each other, thereby sterilizing the wholesale market for Apple products. Secondly, so-called Premium distributors could not risk promoting or lowering prices without risk, which led to an alignment of retail prices between Apple’s integrated distributors and independent Premium distributors”.
Apple has disputed the findings and claimed that it’ll enchantment the choice within the coming days. In an announcement to CNBC, the corporate mentioned: “The French Competition Authority’s decision is disheartening. It relates to practices from over a decade ago and discards thirty 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”.
It’s price noting that this isn’t the primary time that Apple has obtained into bother with French regulatory authorities over its enterprise practices. The firm earlier this yr was fined €25 million by the nation’s Directorate-General for Competition, Consumption and the Suppression of Fraud (DGCCRF) for deliberately slowing down a few of its older iPhone fashions. The firm final week agreed to pay $500 million to settle a class-action lawsuit on the problem within the US.