Germany's T-Mobile Drops iPhone Contractual Obligation

Need proof that Europe’s fair competition laws are a bit stricter than ours? Than look no further than Germany and the recent spat between T-Mobile and Vodafone. After losing out to T-Mobile as the exclusive iPhone carrier in the country, Vodafone filed a court injunction yesterday arguing that T-Mobile’s unsubsidized, network-locked iPhones (which were offered […]

German_iphoneNeed proof that Europe's fair competition laws are a bit stricter than ours? Than look no further than Germany and the recent spat between T-Mobile and Vodafone.

After losing out to T-Mobile as the exclusive iPhone carrier in the country, Vodafone filed a court injunction yesterday arguing that T-Mobile's unsubsidized, network-locked iPhones (which were offered with a 24-month contract) violated German fair competition laws. Responding to the court-backed injunction, T-Mobile said it has agreed to let its customers buy Apple's handset without signing a contract on Wednesday.

While this move would be unheard of here in the U.S., it's important to remember the concession still comes at a relatively heavy price: 999 euros, or $1,478, to be precise. Prior to T-Mobile's decision, the company required its customers to sign a 24-month contract costing a minimum of 1,176 euros in order to buy the 399-euro phone.

According to Reuters, the decision will be retroactive and will allow customers who purchased an iPhone since November 19 to unlock their device free of charge so it can be used with other SIM cards.

It should be noted that this will not let iPhone owners make use of all the functions that the device offers if they choose to use their device on another network. The specifics on what functionalities will be sacrificed have yet to be determined, though.

Earlier this week, Vodafone said that it will not file similar complaints in other countries where the iPhone is set to go on sale. The handset will be available Nov. 29 in France through carrier Orange. Orange says it also plans to offer an unlocked version of the device, in compliance with French telecom regulations.

Photo: Flickr/netzkobold