The anti-trust regulator in France has ruled that Orange France’s arrangement with Apple to offer the iPhone in the country on an exclusive basis is anti-competitive, reports Associated Press. In a ruling that is likely to pave the way for rival mobile operators to offer the iconic device, France’s Competition Council said in a statement that the arrangement posed a “serious and immediate threat” to competition in the French mobile market and was an unfair barrier for users wanting to switch operators. The regulator’s ruling followed a complaint earlier in the year by Orange rival, Bouygues Telecom. The regulator said the ruling was a protective measure while it continues an investigation into Bouygues’ complaint. Both Bouygues and France’s other main mobile operator, SFR, have hinted that they now hope to offer the iPhone in time for Christmas.

According to Associated Press, Orange said it would appeal the decision, arguing that it puts the French market in a “radically different” situation than in Germany, the US, the UK and Spain, regarding the iPhone. Orange began selling the first-generation iPhone on an exclusive basis in November 2007 and the exclusive arrangement remained in place for the launch of iPhone 3G earlier this year. Orange has reportedly sold 450,000 3G iPhones and 150,000 first-generation iPhones to date.