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Last month, Apple was forced by French law to promise that consumers could buy a version of its much-hyped iPhone here without having to be locked into a long-term contract with Orange, the only mobile phone operator offering the new device. Now, the same issue is tripping up Apple’s plans to sell the music-playing cellphone in Germany, the largest European telephone market as Vodafone won a partial victory in the German courts when a temporary injunction granted against T-Mobile under local competition laws. T-mobile had been granted the exclusive right to sell ‘locked’ iPhones in Germany which can only be used on the T-mobile network. In the UK customersw must take out a contract with O2.

http://www.iht.com/articles/2007/11/20/business/iphone.php