France’s Competition Authority fined Apple a staggering €1.1 billion on Monday for striking deals to keep prices high, saying that its operations hurt consumers.
The regulators said that Apple and top re-sellers agreed to align prices with Apple’s own pricing for its iPads and some other products. The deals did not concern iPhones. The investigation began in 2012, following a complaint by eBizcuss, which sells Apple products as an Apple premium re-seller.
“Apple abusively exploited the economic dependence of these premium resellers on it and imposed unfair economic conditions on them that were worse than those for its integrated network of retailers”, the authority said.
Apple called the fine “disheartening” and said that its investment and innovation supports over 240,000 jobs across the country. “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”, the company said.
Two “premium” French Apple re-sellers, Tech Data and Ingram Micro, were also fined a total of €139 million. The regulators said Apple and the re-sellers agreed not to compete.
Apple announced it will appeal the decision.
France fines Apple $1.2 bln for anti-competition acts
EPA/MICHAEL REYNOLDS
A file picture taken 28 November 2013 shows customers looking at tablets on sale for reduced prices, behind the Apple logo on display at a Best Buy store on Thanksgiving Day in Alexandria, Virginia, USA. Apple has agreed to pay 318 million euro (348 million US dollar) to close a litigation case with Italian tax authorities, reports said on 30 December 2015. The US firm stood accused of shortchanging the Italian taxman to the tune of 880 million euro between 2008 and 2013, by shifting profits to its subsidiary in Ireland, where corporate taxes are much lower according to news reports.
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