Apple fined €1.2 billion for price fixing in Europe
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US tech firm Apple has been found guilty of anti-competitive behavior by a French antitrust body and fined €1.1 billion (US$1.32 billion).
The firm was found to have fixed costs for its French wholesalers to force them to set retail prices aligned with Apple’s own, both in-store and online.
The fine is the largest ever imposed by the French antitrust body and addresses Apple’s actions to prevent the wholesalers from freely setting their own business policies. The two wholesalers were also hit with large fines.
“Apple and its two wholesalers agreed not to compete with each other and to prevent distributors from competing with each other,” read a statement from the French regulator, “thereby sterilizing the wholesale market for Apple products”.
Apple will appeal the ruling, claiming the ruling “relates to practices from over a decade ago and discards 30 years of legal precedent that all companies in France rely on with an order that will cause chaos for companies across all industries”.
Questions & Answers
Q.Which specific activity was Apple fined for by the French antitrust body?
Which specific activity was Apple fined for by the French antitrust body?
Apple was found to have fixed costs for its French wholesalers, forcing them to align retail prices with Apple's own, both in-store and online. This prevented wholesalers from freely setting their own business policies.
Q.What was the total amount of the fine imposed on Apple for this anti-competitive behaviour?
What was the total amount of the fine imposed on Apple for this anti-competitive behaviour?
The French antitrust body fined Apple €1.1 billion, which is equivalent to US$1.32 billion. This represents the largest fine ever issued by the French regulator.
Q.Did the French wholesalers involved in the situation also face any penalties?
Did the French wholesalers involved in the situation also face any penalties?
Yes, the two wholesalers who collaborated with Apple in the anti-competitive practices were also penalised. The article states that they were hit with large fines.
Q.How has Apple responded to the ruling made by the French antitrust body?
How has Apple responded to the ruling made by the French antitrust body?
Apple has stated it will appeal the ruling. They claim the decision concerns practices from over a decade ago and disregards legal precedent, potentially causing market disruption.
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