Is it permissible to pay late payment penalties on utility bills (electricity, water, rent, telecommunications) in Europe when there is no other option? And is it permissible to obtain a free phone as part of a monthly mobile contract if the contract includes a late payment penalty and there are no other contracts free of it?

It is not permissible to stipulate a late payment penalty on debts, as it is usury (riba), and accepting this condition is impermissible.

Two cases are exceptional:

First: Living in countries where services are not available except through an usurious condition. In such a case, it is permissible to deal with it, while intending to pay on time to avoid the interest. This situation is evaluated as a necessity.

Second: Contracts of adhesion that cannot be altered (such as electricity and water contracts). It is permissible to enter into them due to their necessity.

Therefore, it is not permissible to purchase by installments with an usurious condition unless it is a necessity, such as needing a phone SIM card that is only granted with a contract containing this condition. However, if it is possible to purchase in cash, or if there is no pressing need, then it is not permissible to enter into usurious contracts.