Apple and two of its wholesale distribution partners, Ingram Micro and Tech Data, received fines totalling EUR 1.24 billion from the French antitrust regulator, following an investigation started in 2012. The companies have been found guilty of anticompetitive sales practices for a range of Apple products including computers and tablets, but not the iPhone. The fine inflicted on Apple amounts to EUR 1.1 billion, the largest ever imposed by the French competition watchdog. Tech Data and Ingram Micro will have to pay sanctions of EUR 76 million and EUR 63 million respectively.
Announcing its decision, the watchdog said that Apples’s anticompetitive practices fell under three main areas. Firstly, the company was guilty of stifling the wholesale market for its own products. This was done by agreeing not to compete with Tech Data and Ingram Micro, while preventing other distribution partners from competing with each other.
Secondly, the regulator found that so-called Premium distributors could not safely introduce promotions or lower prices, leading to an alignment of retail prices between Apple's integrated distributors and independent Premium distributors.
Thirdly, these independent distributors were subjected to unfair and unfavourable commercial conditions compared to Apple’s network of integrated distributors, such as delays or lack of supplies following the launch of new products. This amounted to an abuse of economic dependence, said the watchdog, noting that this is a particularly serious practice.
In a statement, Apple expressed its strong disagreement over the ruling, adding that it intends to appeal against the fine. Ingram Micro also reacted to the announcement, saying that it has fully complied with French laws and plans to contest the decision via legal means.
