French Antitrust Regulator has fined Apple a whopping $1.2 Billion or €1.1 billion. The fine was imposed on Apple for its anti-competitive behaviors in its distribution network. The French authority was investigating the issues for years now and they have fined this record-breaking amount.
This is the largest amount ever imposed by France on Apple. Earlier in February 2020, Apple was fined $27.9 million for throttling the performance of older iPhone models without letting users know about it.
Not just Apple, the other two Apple wholesalers, Tech Data and Ingram Micro were also fined $84.2 million and $69 million respectively as their practices affected the small scale distributors.
French Authorities said, “Apple and its two wholesalers agreed not to compete and prevent distributors from competing with each other, thereby sterilizing the wholesale market for Apple products“.
In an official statement to CNBC, Apple said, “The French Competition Authority’s decision is disheartening. It relates to practices from over a decade ago and discards thirty 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 is appealing against the decision made by the French Authority and the company strongly disagree with their claim. Following this, the Apple shares were down more than 13% on Monday as well. Apple has also announced to pay $500 million last week to settle class-action lawsuits on the issue in the US.