Apple Forced To End Exclusivity With Orange

By Christian Coley
16:42, December 18th 2008
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Apple Forced To End Exclusivity With Orange

Even if, in many countries, Apple has an exclusive deal with one particular carrier to sell and provide service for the iPhone 3G, in France the situation is different. In a recent meeting, the Conseil de la concurrence ruled that any French mobile operator should be allowed to carry the iPhone, ending Orange's domination.

The Conseil de la concurrence is France's competition regulator. This decision comes after a complaint filed by Bouygues Télécom, the number 3 mobile operator in the country. They said there is a lack of competition in the mobile communications market and that Apple and Orange's deal further ruins competition between the mobile operators.

From now on, according to the council's injunction, Apple and Orange are barred from enforcing the exclusivity between the two companies or entering into any new contracts until the final decision of the council is known. This can only mean that Bouygues Télécom and other mobile operators can provide service for an iPhone.

Even if the exclusivity between Apple and one specific carrier looked like a good decision when the iPhone was first introduced, it's not such a good strategy nowadays, as Apple has moved to a more common subsidy sales model with the launch of the iPhone 3G.

The Conseil de la concurrence also said that handset exclusivity makes mobile operators compete more on which handsets they carry. That provides little incentive to offer better service or lower prices, both of which would greatly benefit consumers. Now, Bouygues Télécom can't wait to offer the iPhone, if Apple agrees.

Of course, Orange will appeal this decision in court. It remains to be seen if the Conseil will move on with this decision and leave Orange and Apple without a deal.



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