Apple sued by Portuguese reseller for 40 million EUR

Apple sued by Portuguese reseller for 40 million EUR
A few days ago there was talk that Apple would be sued by a consumer rights group in Portugal over the wording of its AppleCare warranty service. As if that wasn't enough courtroom drama for the Cupertino based tech titan in the country, it turns out that an IT reseller and distributor by the name of Taboada & Barros was already suing Apple for 40 million EUR (approximately $49 million) for unfair trade practices and price-fixing.

Portuguese language blog iPhone Tuga, passing along information gleaned from the Weekly Sol says the action by Taboada  & Barros dates back to February, but was only made public now in light of the Portuguese Association for Consumer Protection (DECO) case with AppleCare. In Italy, Apple had lost a similar case about its warranty and was fined $1.2 million. The litigation has no such precedent.

Taboada & Barros
controls a large Apple distributor called Interlog which claims that Apple intentionally limited the amount of products to be distributed by third party firms resulting in Intelog's failure. At the same time, Apple was getting more involved in the country. For online sales, Apple has its own dedicated site but relies on third party resellers for physical sales.

A post on Portugal business news site Economico from May 2011 revealed how back then, with Interlog having failed and no further Apple iPhones or Apple iPads getting shipped into the country, some retailers were saying that they had unfilled orders for devices like the Apple iPad. Weekly newspaper Sol passed on the word from a source at Taboada & Barros  that in addition to limiting the amount of new product to go to third parties, Apple renegotiated the margins that third party resellers could earn from 12% down to 4%, in effect cutting resellers profits by two-thirds on Apple devices. The source said that, "Apple unilaterally established products, prices and quantities to be sold to large retailers." Both the huge cut in margin and the lost sales make up the 40 million EUR that T&B is asking for in the suit.

As for Apple, it would seemingly like to control the bulk of sales in the country of Apple products. Right now, thanks to its website it controls online sales. Physical sales might be next. Limiting supply and cutting resellers' margins are doing the trick, but a Portuguese Court might put the kibosh on the whole scheme. Only time will tell.

source: iPhoneTuga via  TechCrunch

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63 Comments

1. serious9010

Posts: 254; Member since: Jul 20, 2012

I bet the suing happens all the time and that all companies get involved. It's just that when it comes to Apple, the articles will be more popular since they cause all the fandroids an erection. It's like the Foxcon case where some fandroids still think Apple is the only company using it.

2. serious9010

Posts: 254; Member since: Jul 20, 2012

go ahead fandroids, thumb me down. I cannot find a f*** to give.

5. ilia1986 unregistered

And of course - you believe that Apple should be treated just like any other tech company, right? I mean none of us should be outraged of the fact that in the entire history of consumer electronics - it is Apple which banned 2 competitor's products. So yeah - whatever Apple got slapped with - they more then deserve it. We will not forget the ban of the Galaxy Nexus and the Galaxy Tab. Never ever.

21. -box-

Posts: 3991; Member since: Jan 04, 2012

I'm not a "fandroid" and I thumbed you down for being verbally narrow-minded in your outspokenness and not having anything useful or constructive to contribute to the discussion. Have a nice day.

28. thedarkside

Posts: 654; Member since: Apr 30, 2012

BAZINGA!

33. serious9010

Posts: 254; Member since: Jul 20, 2012

@ilia1986. hahaha you write with so much patriotism and emotion it's pathetic. I lol'd so hard when you said "we will not forget...never ever" as if you were talking about the war in Bosnia.They're just phones. Relax, sheep ;)

37. thedarkside

Posts: 654; Member since: Apr 30, 2012

i dont think ilia is a sheep, but i do think youre an idiot.

34. cptbeatstix

Posts: 101; Member since: Jul 19, 2012

I find it funny that he is talking crap about "Fandriods" and he has an android avatar.

58. jroc74

Posts: 6023; Member since: Dec 30, 2010

lol....Exactly.

35. cptbeatstix

Posts: 101; Member since: Jul 19, 2012

Umadbro?

40. serious9010

Posts: 254; Member since: Jul 20, 2012

We will not forget hahahahahah.. still so funny :'D

41. ivanko34

Posts: 617; Member since: Sep 04, 2011

P o s

42. ilia1986 unregistered

Troll reported

48. serious9010

Posts: 254; Member since: Jul 20, 2012

So I'm a troll because I've hit your soft spot with my opinion? Give me a break. I reported you as well, by the way ;)

51. Mario1017

Posts: 336; Member since: Sep 04, 2011

You are so immature its pathetic.. you must really have both no life and no sense of humor to find him saying "we will never forget." Sure it sounds a but dumb but for you to laugh at it so hysterically is...no words can even describe. Lol and reporting cuz he called u a troll? Just curious, how old are you?

56. joey_sfb

Posts: 6794; Member since: Mar 29, 2012

why you always invite us to thumb you down?

63. serious9010

Posts: 254; Member since: Jul 20, 2012

us? tell me more about your army, joey ;) I'm outta here, phone arena is infested with fandroids. I just wanted to say, that I disagree with placing the blame only on Apple, that's all. Good day, ladies :)

7. fost4real

Posts: 27; Member since: Dec 29, 2011

You do not understand the issues. wakeup my friend. Apple sue companies for producing devices in rectangular shapes does that make sense to you? they also sue in the name of touch screen gestures and claim they own it. Things that existed way back before they started implementing. No one sued them for copied notification bar from android bcos we believe in innovations and fair competition.

52. Lucas777

Posts: 2137; Member since: Jan 06, 2011

i do not believe google has a patent on the notification bar… and you dont see apple suing asus or anything-- only samsung because they blatantly copied apple just look up the smart cases for the tab and the smart cover for the pad-- direct copies

59. jroc74

Posts: 6023; Member since: Dec 30, 2010

A couple of things: 1. Apple sued Motorola for the XOOM.....There should be nothing more said after that....The ONLY place the XOOM looks like an iPad is the black screen borders...if that. 2. Bringing up Smart cases....when the idea and product was done first by Incase....is not good. And I just thought of thing: Apple doesnt like it when another company copies an idea they copied. I guess Apple wants the be the only company that copies someone..If one was to really look back and do research....you will see Apple is just as guilty of copying as others.

62. willard12 unregistered

So you're saying that apple is a patent troll and Google isn't. Is this question about copying or patenting? You all but acknowledge apple blatantly copied the notification bar and excuse them because there is no patent. Then go on to mention the smart cover...which wasn't even made by Samsung. I guess the slide to unlock patent suits are great to you also.

9. SleepingOz unregistered

Karma is a b*tch, deal with it!

24. iWorld

Posts: 85; Member since: Jul 05, 2012

Thermonuclear war has begun now every electronic industry is going to be dragged to the war

32. Trdae.Mark

Posts: 1; Member since: Jul 22, 2012

Really good news.... Apple should ev got fined 600 million! that deadly evil fruit, banning every-one. take that. wishing more to come .

3. srdjav

Posts: 3; Member since: Mar 18, 2012

49 million EUR is $59 million...

6. SherlockHolmes

Posts: 125; Member since: Apr 10, 2012

They wanted to say 40 million Euro = 49 million U.S.D.

54. jimjam unregistered

It is all pennies to apple

4. JunkCreek

Posts: 407; Member since: Jul 13, 2012

No, not really, it is come to Apple since they sued others because of it's looks not because of how it's using the code nor using program language. Other's sue because of it's name being used without permissions, same coded of trade mark function or using program language that used exclusively. Sorry for my bad english, I live in Indonesia and rarely using English.

22. -box-

Posts: 3991; Member since: Jan 04, 2012

And yet your comment is more sensible, better thought out, and stated more understandably than many on the internet. Kudos.

29. thedarkside

Posts: 654; Member since: Apr 30, 2012

agreed, kudos to you friend. if you didnt have that last line on here i would expect you to be from the states. go you!

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