France regulator hits Apple with $1.2 billion in fines for anticompetitive practices News
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France regulator hits Apple with $1.2 billion in fines for anticompetitive practices

The Autorité de la concurrence, France’s antitrust regulator, issued a USD $1.2 billion fine for Apple on Monday, citing the company’s anticompetitive practices in dealing with two of its wholesalers. The wholesalers, Tech Data and Ingram Micro, were also issued fines in the tens of millions.

In a press release published Monday, the agency stated that “it is prohibited for a manufacturer who heads a network to undermine competition between its wholesalers by pre-allocating customers to them, to have an agreement with its distributors on the retail prices charged to end consumers, or to abuse the situation of economic dependency of its trading partners.”

Apple was accused of those such activities in violation of French law. The three anticompetitive practices that led to Monday’s fines were (1) to “divide products and customers between Tech Data and Ingram Micro,” thus “sterilizing” the wholesale market by manipulating the competition’s market share; (2) to require these wholesalers to align the prices they charged with those charged in Apple’s own retail outlets; and (3) to take advantage of resellers of Apple products by abusing the dependency of these companies on Apple’s goods, such as by withholding stock delivered to the resellers while fully supplying Apple’s own stores. According to the French authorities, “[i]n some cases, in order to meet an order, they were even forced to source from other distribution channels, for example, by ordering directly from an Apple Store as an end customer would have done, in order to supply their customers.”

Apple plans to appeal the decision.