AAPL Apple Inc

By Mauro Orru

The French Competition Authority said Monday that it has imposed a fine of 1.1 billion euros ($1.22 billion) on Apple Inc. for anticompetitive practices in its distribution network and the "abuse of economic dependence" of its independent resellers. Apple said it strongly disagreed with the fine and planned to appeal.

"The French Competition Authority's decision is disheartening," a spokesman for Apple told Dow Jones. "It relates to practices from over a decade ago and discarded 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 authority also fined Tech Data Corp and Ingram Micro--two Apple wholesalers--EUR76.1 million and EUR62.9 million respectively in connection with anticompetitive practices in the distribution network.

Isabelle de Silva, president of the FCA, said: "Apple and its two wholesalers agreed not to compete and prevent distributors from competing with each other, sterilizing the wholesale market for Apple products."

The fine comes at a critical moment for the technology giant with Apple and the tech industry grappling with the consequences of the coronavirus pandemic.

Apple said the past week that it would close all its retail stores outside Greater China until March 27 in light of the worsening spread of the virus.

The company had previously warned that it doesn't expect to meet revenue guidance for the current quarter of between $63 billion and $67 billion as the coronavirus limited iPhone production for world-wide sales and curtailed demand for its products in China.

The measure adopted by the FCA could add further pressure to already strained relations between the European Union and the U.S. after high-profile U.S. companies became the center of focus of the EU antitrust enforcer.

Alphabet Inc.'s Google is seeking to overturn three antitrust rulings it lost against the EU that have totaled more than $9 billion in fines.

Write to Mauro Orru at mauro.orru@wsj.com; @MauroOrru94

(END) Dow Jones Newswires

March 16, 2020 08:02 ET (12:02 GMT)

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