iPhone being set free?
French courts think it should be, and O2 announces PAYG
Apple has been very careful to structure the administration of the iPhone platform across the world, preferring to offer exclusivity for the handset’s launch in each region.
But the French courts raised concerns over such an agreement breaching competition regulation laws, and is set to make a decision on whether Orange is allowed to maintain exclusivity.
The service provider has sold over 600,000 units since the launch in November 2008, and both Apple and Orange have stepped in to defend the five year exclusivity agreement after the national competition regulator stated the deal introduced “…a new element of rigidity in the sector which is already suffering from a lack of competition.”
On home shores, O2 has announced that the iPhone will be made available on PAYG from 16th September. This doesn’t alter O2’s own exclusivity contract, though handsets will also be available through the Carphone Warehouse and Apple store.
Breaking away from contract tie-ins is a first step toward multiple-supplier availability, however, and along with the action in the French courts, suggests the iPhone might soon be set free for pricing competition to begin between suppliers - a move Apple will have undoubtedly prepared for to help push a second wave of interest in the gaming phenomenon.
