The 3G iPhone, slated to go on sale Friday for $299 in the U.S., will cost Belgians $1,000, thanks to a peculiarity in that country's laws.

The law regulating how much companies can price items will result in the 8GB iPhone 3G being sold by Belgian carrier Mobistar for $825 and the 16GB version for $966.

The law, which the Brussels government hopes to remove in September, does not allow companies to sell subsidized phones at little cost in order for wireless subscribers to buy expensive monthly plans. The snafu comes as Dutch residents across the border from Belgium can pick up a iPhone for $1 when signing up for a T-Mobile plan.

Unlike the first iPhone, which had a higher price due to a revenue sharing deal Apple cut with carriers, the iPhone 3G is being sold at a discount by wireless providers hoping to use the popular gadget to attract more subscribers.