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Apple Fined Further $1.2 Billion In France For ‘Anti-Corporate Behaviour’

by : Niamh Shackleton on : 17 Mar 2020 12:23
Apple Fined Further $1.1 Billion In France For 'Anti-Corporate Behaviour'Apple Fined Further $1.1 Billion In France For 'Anti-Corporate Behaviour'PA Images/Pexels

Apple has found itself in hot water with French authorities once again for alleged ‘anti-corporate behaviour’.

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The global tech company has been slapped with a $1.2 billion (€1.1 billion/£1 billion) fine for its actions – thought to be the largest ever fine the French Competition Authority has given.

The investigation on Apple by the French Competition Authority began in 2012 after eBizcuss, which sells Apple products as an Apple Premium Reseller, made a complaint about the tech giant.

Apple To Pay $500 Million After Admitting To Slowing Down iPhonesApple To Pay $500 Million After Admitting To Slowing Down iPhonesPexels

Isabelle de Silva, president of the French Competition Authority, explained the reasoning behind the harsh fine.

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As per BBC News, she said:

Apple abusively exploited the economic dependence of these premium resellers on it and imposed unfair economic conditions on them that were worse than those for its integrated network of retailers.

Responding to the news of the fine, a spokesperson for Apple spoke to CNBC and deemed it ‘disheartening’.

They said:

The French Competition Authority’s decision is disheartening. It 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. We strongly disagree with them and plan to appeal.

Apple To Pay $500 Million After Admitting To Slowing Down iPhonesApple To Pay $500 Million After Admitting To Slowing Down iPhonesPexels

This is the second fine the tech company has been hit with in recent times.

Earlier this month, it was fined a whopping $500 million for slowing down the older models of its phones.

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In December 2017, Apple confirmed that it does slow down some models as they age, but only because battery performance reduces over time – however, this was disputed as it was believed that the tech company slowed down its older models to encourage customers to buy newer ones.

Apple iPhoneApple iPhonePA images

Apple later backtracked on its initial comment and claimed the reasoning behind slowing the batteries was to ‘prolong the life’ of the devices.

The US District Court calculated the figure by stating Apple needed to pay each iPhone user with an affected model $25 each, which was calculated to amount to a minimum of $310 million and a maximum of $500 million.

Apple also received a hefty fine of €25 million (£21 million/$27 million) in February from France’s consumer watchdog, the Directorate General for Competition, Consumer Affairs and Fraud Prevention (DGCCRF), for the same issue.

Apple To Pay $500 Million After Admitting To Slowing Down iPhonesApple To Pay $500 Million After Admitting To Slowing Down iPhonesPexels

The DGCCRF said Apple had committed a crime of ‘deceptive commercial practice by omission’.

While Apple makes millions every day, this still a hell of lot of money to lose.

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Niamh Shackleton

Niamh Shackleton is a pint sized person and journalist at UNILAD. After studying Multimedia Journalism at the University of Salford, she did a year at Caters News Agency as a features writer in Birmingham before deciding that Manchester is (arguably) one of the best places in the world, and therefore moved back up north. She's also UNILAD's unofficial crazy animal lady.

Topics: News, Anti-corporate behaviour, Apple, fine, French Competition Authority, mobile phones, Money, Technology

Credits

BBC NEWS and 1 other
  1. BBC NEWS

    Apple hit with record €1.1bn fine in France

  2. CNBC

    Apple fined a record $1.2 billion by French antitrust authorities