French Competition Authority said it found Apple acted to prevent independent retailers in France from competing on price.
One of Apple's premium resellers had complained about the alleged uncompetitive practices
Photo Credit: Johannes Eisele/ AFP
France's competition authority slapped a record EUR 1.1 billion ($1.2 billion or roughly Rs. 9,100 crores) fine on US tech giant Apple on Monday for anti-competitive behaviour towards its independent retail distributors.
The authority said it found that Apple acted to prevent independent retailers in France from competing on price and abused its economic power over them.
The head of the authority, Isabelle de Silva, said it was "the heaviest fine against a firm" as well as in any case, which also included two of Apple's wholesalers in France who were hit with fines worth nearly EUR 140 million.
The case began in 2012 when one of Apple's independent premium resellers complained about uncompetitive practices that included squeezing-off supplies in favour of its own stores.
The authority found three areas of anti-competitive behaviour.
The first was that Apple and its wholesalers agreed not to compete against one another.
Second, independent retailers "could not without risk undertake promotions or lower prices, which led to an alignment of retail prices", said de Silva.
"Finally, 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," she added.
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