Apple News: French Regulators Hit Tech Giant With $1.2 Billion Fine For Alleged Antitrust Violations

French regulators hit Apple with the biggest fine in the country’s history, forcing the tech giant to pay $1.2 billion for alleged restrictions hidden in contracts with select retailers.

The French Competition Authority imposed the fine on Monday for Apple’s alleged violation of the country’s antitrust laws. Apple allegedly reached an agreement with wholesalers Tech Data and Ingram Micro, who “agreed not to compete” with each other. The alleged agreement kept other wholesalers from competing with each other, “thereby sterilizing the wholesale market for Apple products.”

French regulators began investigating Apple in 2012 after reseller eBizcuss filed a complaint. The reseller closed shortly after filing the complaint, though the complaint and several other lawsuits carried forward.

The complaint alleged Apple was rigging the French market to keep prices higher on their products, including those available from resellers. Apple’s alleged actions hit Apple Premium Resellers the hardest, who “specialized in the distribution of Apple products” and “join an optional program intended to promote an environment of selling and delivering a very high quality customer experience to consumers.”

Other Apple Premium Resellers listed in the regulators ruling include ActiMac, YouCast, iSwitch, and Easy Computer.

Apple’s alleged agreement with Tech Data and Ingram meant other resellers couldn’t offer promotions and lower prices on products, fostering a competitive market. This allowed Apple to allegedly abuse “the economic dependence" of other resellers.

An Apple spokesperson said the company plans to appeal the decision.

“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,” the spokesperson told reporters. “We are extremely proud to serve our French customers and believe they should be allowed to choose the product they want, either through Apple Retail or our large network of resellers across the country.”

The fine comes at a bad time for Apple as it closes worldwide stores in response to the COVID-19 crisis. Apple CEO Tim Cook also said the company is committing $15 million “to help treat those who are sick and to help lessen the economic and community impacts of the pandemic.”