French Court Orders Apple to Pay €39 Million Over Unfair iPhone Contracts

The Paris Commercial Court found Apple guilty of imposing restrictive and unfair conditions on French mobile operators for iPhone sales, including pricing control and advertising limitations, dating back more than a decade

Apple faces a €39 million payout after French court rules against its iPhone sales contracts
Apple faces a €39 million payout after French court rules against its iPhone sales contracts

A French court has ordered Apple to pay approximately €39 million to three major French mobile network operators after finding that the company imposed unfair contract terms related to the sale of iPhones.

The Paris Commercial Court’s ruling, delivered this week, also includes an additional €8 million fine imposed on the tech giant. The judgment stems from a long-running investigation into Apple’s business practices in France, dating back more than a decade.

According to the court, Apple’s agreements with operators—Bouygues Telecom, Free, and SFR—contained restrictive clauses that heavily favored the American company.

The contracts reportedly required the telecom providers to sell a minimum number of iPhones, dictated their retail prices, and gave Apple extensive control over how its products and trademarks were advertised.

The ruling further noted that Apple had used certain patents owned by these operators without providing any form of compensation or reciprocal benefits. The court deemed these terms “unbalanced and contrary to fair competition principles.”

The dispute traces back to the early years of the iPhone’s entry into the French market. During that period, Apple maintained tight control over its distribution network, often leveraging its brand dominance to dictate terms to carriers seeking to offer its popular smartphones.

French authorities began investigating these practices following complaints from network operators, leading to the recent ruling that now obligates Apple to compensate three of the four major telecom companies in France.

In its response, Apple announced that it plans to appeal the decision, emphasizing that the contracts in question date back more than ten years and no longer reflect its current business practices.

“We strongly disagree with the court’s conclusions and will appeal the ruling,” an Apple spokesperson stated. “Our relationships with French carriers today are based on fair and transparent terms.”

However, under French law, the appeal does not suspend the enforcement of the ruling. This means Apple must proceed with the payments to the affected telecom operators while the appeal process is ongoing.

The ruling represents another chapter in Apple’s ongoing legal challenges in Europe, where regulators and courts have increasingly scrutinized its market behavior and contractual practices.

Analysts suggest the decision could encourage further legal actions by other companies or EU authorities, potentially prompting Apple to reevaluate its historical agreements with distributors and partners in Europe.

For now, the Paris Commercial Court’s judgment serves as a reminder that even the world’s largest tech companies remain subject to local competition and consumer protection laws.

This article was created using automation technology and was thoroughly edited and fact-checked by one of our editorial staff members