Apple Could Be Fined Millions for Strict iPhone Marketing Contract
Gareth Andrews / 4 years ago
Did you ever look at a phone provider catalogue and think, where have I seen that advert before? If the phone in question is an iPhone then you may have noticed its prominent placement in the catalogue along with the near identical adverts in every single catalogue. There is a reason for this other than just marketing, and could get Apple fined up to €48.5 million for their strict iPhone marketing terms.
France’s country competition regulators have launched a complaint regarding Apple’s agreements, stating that they are actually illegal. Part of the terms and conditions is that carriers have to order a minimum number of iPhones, cover the cost of repairs for some of the phones and even pay for the ad’s used (including those used for in-store displays).
If this wasn’t enough Apple gains several legal benefits, such as being able to access and use some of the carriers patents and even use their branding as they see fit. The contract also allows Apple to void the contract without any prior notice, something that would scare anyone selling thousands of euros worth of equipment.
With Apple looking at renewable energy for their facilities, they may want to rethink their strategy when it comes to selling their devices as even if this court case is just in France, other countries may follow suit and start looking at stocking alternative products because of the contract they are being forced to sign.