French broadband and mobile operator Free, which was seeking EUR 29 million in damages from rival SFR for the "unfair and misleading practice" of selling subsidised phones, has been ordered by a Paris court to pay it EUR 300,000 for slander. The case was watched by closely by the French industry because 70 percent of mobile customers are on 1 or 2-year contracts linked to a subsidised phone, reports Les Echos.
Free claimed in its May 2012 lawsuit that SFR’s subscriptions with subsidised phones hid the true cost of the handset and forced them into long contracts to make the phone payments. It argued that the provision of phone subsidies should follow financial services regulations. The court said SFR’s practices do not constitute consumer credit nor sale on credit and that the information provided by SFR is pertinent, simple, readable and understandable.
Free does not subsidise mobile terminals, giving consumers more transaparency about the device’s cost. It has a phone loan partner, but only 5 percent of Free’s Sim customers opt for a phone loan, according to the operator.
