Vodafone in Legal Battle with Papistas for Franchise Cancellations

Mobile Trade Stores has sued the Greek unit of Vodafone for €1.37bn. The company said this is for the damages it went through when franchise agreements were cancelled by Vodafone.

Papistas the parent company of MTS said it is suing Vodafone on grounds of damage due to lost business and moral damages.

Simon Gordon, Vodafone's spokesman stated, "The Papistas Group companies in Greece have made legal claims against Vodafone Greece following Vodafone's termination of a long-standing commercial relationship," "The claims are without merit and the purported losses completely fanciful. Vodafone will be defending them vigorously."

Vodafone started business with MTS in the year 2000. By 2008 it employed 250 staff in the several mobile phone shops branded as Vodafone, in Athens and northern

Greece. These shops have shut since Vodafone terminated the deal with MTS due to the failure of being able to meet the targeted sales.

According to MTS, Vodafone after 2008 unexpectedly altered its policy in Greece and terminated a contract for maintenance services and also a contract on loan. This caused harm to the liquidity of some other companies of the Papistas Group. MTS also said in December that it has filed a suit that is similar, against Vodafone amounting to 255.5 million euros.