In a move that France Telecom (NYSE: FTE) itself has called a “serious blow,” France’s Competition Council has temporarily suspended the agreement the firm has with Apple (NSDQ: AAPL) that lets its French operator Orange sell the iPhone 3G exclusively. The competition watchdog said the ban, which takes effect on Thursday, is aimed at letting consumers buy the gadget on contract from competing operators SFR and Bouygues Telecom, right in time for the holiday sales season. France Telecom said it would appeal the decision.

So, how angry are France Telecom execs with this decision? In a statement issued today, the global telecoms group had nothing but sharp criticism for the Competition Council, which it accused of making a decision without “in-depth examination,” that would not only “undermine Orange’s efforts to develop high-speed mobile services in France,” but would have a “major impact” on the market, with possible “serious consequences on manufacturers, as well as their subcontractors and software suppliers.”

Robert adds: So what chance of the UK’s Office of Fair Trading or Competition Commission reviewing O2’s iPhone exclusive here? French authorities are notoriously more in favour of equal-opportunities retail, but Apple has come up against the more powerful European Commission on several fronts like iTunes pricing and iPod DRM in the last two years. Any UK outcome may be precipitated in Brussels rather than London. Or Apple, seeking more sales, could decide to offer the handset to other networks before then, since it’s already a non-exclusive in several European countries.