VoIP application on the Apple iPhone has been banned in Germany by the Higher Regional Court of Hamburg, the application; Sipgate enables iPhoners to make VoIP calls using local WiFi hotspots in Germany.

Exclusive distributor of the Apple iPhone in Germany, T-Mobile brought the court case, and argues Sipgate had used unfair business practices to attract consumers who are otherwise locked with T-Mobile whilst making calls.

The core point of the argument was that in order to use Sipgate the iPhoner would have to jailbreak their Apple iPhone handset and thus breach the contract with T-Mobile.

Source — cellular-news