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Vodafone challenges iPhone deal with T-Mobile for Germany

A German court has granted British telecoms group Vodafone a temporary injunction against Deutsche Telekom's T-Mobile International over its sales terms for the Apple iPhone, according to media reports.

The injunction, exclusive to the German market, aims to examine the acceptability of T-Mobile's iPhone customer contracts.

As the sole distributor for the iPhone in Germany, T-Mobile requires customers to sign a 24-month contract to use the iPhone on T-Mobile's Edge network. Customers may not purchase the device without a SIM card, limiting its use to T-Mobile customers only.

Held up by a court in Hamburg, the injunction challenges T-Mobile's exclusivity arrangement with Apple for German distribution, which took effect in September.

T-Mobile, Vodafone and Apple did not respond to emails.

Mixed news reports have surfaced regarding the injunction details. The Dow Jones newswire reported that the injunction indicated a total ban on sales. Other news reports claimed that T-Mobile can continue to sell the device if it is available SIM-free.

Vodafone reportedly does not want to keep T-Mobile from selling the popular iPhone. Instead, the company wants the German court to examine whether Deutsche Telekom can legally execute exclusive rights to distribute the iPhone handheld device with its existing customer contracts.

Per the agreement, customers must also buy an "iPhone Complete" plan to use the device. Plans include unlimited data, visual voicemail and access to more than 8,000 Wi-Fi hotspots in Germany.

T-Mobile operates the largest WLAN network in Germany. As one of Deutsche Telekom's three business units, T-Mobile's focus is markets in Europe and the United States. The company's Edge platform is based on Global System for Mobile communications (GSM), a digital wireless standard.

T-Mobile is considering seeking damages and will appeal the temporary injunction.

Reports indicated that T-Mobile has not stopped selling the device. Customers can buy the 8GB model of the Internet-enabled iPhone in Germany for 399 Euros ($584) plus other applicable fees.