According to Reuters, an agreement between Apple Inc and France Telecom tying the blockbuster iPhone 3G in France exclusively to customers of No. 1 mobile operator Orange has been suspended by the French competition watchdog.

The Competition Council said the decision was aimed at allowing customers to buy the device with a contract from rival operators SFR and Bouygues Telecom in time for the Christmas sales rush and that it would take effect from Thursday at the latest.

In a statement on Wednesday, France Telecom said it intended to appeal against the decision as it "places France in a radically different position" than Britain, Germany and Spain, where Apple has also struck exclusivity deals.

In a statement, the council said that the five-year exclusive deal with Apple was "clearly excessive" and risked "serious and immediate damage to competition on the mobile market and to consumers".

A council official said an appeal against its decision, an "urgent" measure, and an in-depth examination of the agreement, would together likely take 12-15 months to complete.

Bouygues Telecom, a unit of Bouygues SA and the source of the Sept. 18 complaint over the Apple deal, France's No. 3 mobile operator, said in a statement that it hoped to start selling the iPhone as soon as possible.

The Competition Council said that on a "conservative estimate" Orange's sales of the high-speed 3G version of the iPhone, based on average selling prices, totalled 220 million euros ($308.2 million) between its launch on July 18 and Nov. 5.

If they defied the ruling, Apple and France Telecom would face a fine, said the council, adding that exclusivity contracts with operators for future models of the iPhone would be capped at three months.

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