IPhone won't accept sim card

Hey, so I have a problem. I bought an iPhone4 from the apple store, got it working fine on O2. But now I'm in another country and I've tried to pun in a new micro sim and it won't work. Invalid sim card was the message displayed and the phone is unable to load the network list. Why is this happening? The phone should be unlocked since it was purchased in the apple store.

It's not Apple's fault. Apple doesn't own any networks, they just make the hardware. Contracts with many carriers that support the iPhone require the phone be locked to their network. Such is the case with AT&T.
French law requires that unlocking be available for all phones sold there. You can purchase an officially unlocked phone at any Apple store or online. Be careful if you purchase at an Apple store, both carrier locked & unlocked are available. Make sure, if you purchase at an Apple store, that the phone is unlocked. While french law requires the carriers unlock phones, best to start out with an unlocked phone to begin with.

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