Korean FTC Approves Apple's $89.7 Million Correction Scheme for Unfair Market Practices

Apple Korea's correction scheme to spend 100 billion won ($89.7 million) to support consumers and small-sized businesses has been accepted by the country's antitrust watchdog, following a years-long investigation into the company's unfair market practices (via The Korea Herald).

Emblem of the Korea Fair Trade Commission South Korea English
Apple has been under investigation in Korea since 2016 over unfair iPhone contracts that required local carriers to pay advertising and repair costs, with the Korean Federal Trade Commission conducting raids in June 2016 and November 2017.

The Korean FTC initially looked into imposing penalties on Apple Korea and held several plenary sessions to discuss the issue. Instead, Apple suggested a voluntary correction scheme to conclude the case, and the FTC agreed to review the proposal last year. Today's report confirms that the watchdog has now accepted the plan under its Monopoly Regulation and Fair Trade Act.

Under the Monopoly Regulation and Fair Trade Act, companies that are accused of antitrust activities are allowed to state a correction scheme. Should the FTC view the suggested corrective measures as reasonable, it is to close the case without judging the illegality of the case.

The related clause was introduced in 2011 in order to add speed to pending cases and to provide tangible remedies to consumers, instead of holding on to legal means.

The plan consists of Apple spending 40 billion won on the construction of an R&D center for local small-sized businesses involved in smartphone manufacturing, with 25 billion going into offering consumers 10% discounts in ‌iPhone‌ repairs and warranties.

Another 25 billion won will be used to establish an education center for training ICT developers, while the remaining 10 billion won will go toward supporting digital education in schools and public facilities.

"We are pleased this process has reached a conclusion and look forward to expanding and accelerating our existing commitments here with these new investments that will benefit local suppliers and manufacturers, small businesses, entrepreneurs, and education," Apple said in a statement.

"This broad range of initiatives will strengthen innovation and economic opportunity across Korea. We look forward to sharing more details on these plans in the months to come."

The FTC will appoint an accounting firm to review Apple's implementation of the plan on a half-year basis over the next three years. If Apple Korea doesn't follow through on its commitment, the company could face an enforcement penalty of 2 million won per day and have the correction scheme declared invalid.

Top Rated Comments

fai0 Avatar
41 months ago

Methinks this has something to do with the Apple Car.
Just right below.. LoL



Attachment Image
Score: 5 Votes (Like | Disagree)
robertcoogan Avatar
41 months ago
Methinks this has something to do with the Apple Car.
Score: 5 Votes (Like | Disagree)

Popular Stories

reset password request iphone

Warning: Apple Users Targeted in Phishing Attack Involving Rapid Password Reset Requests

Tuesday March 26, 2024 4:34 pm PDT by
Phishing attacks taking advantage of Apple's password reset feature have become increasingly common, according to a report from KrebsOnSecurity. Multiple Apple users have been targeted in an attack that bombards them with an endless stream of notifications or multi-factor authentication (MFA) messages in an attempt to cause panic so they'll respond favorably to social engineering. An...
iPhone Home Screen Gradient Blank Spaces 1

Sources: iOS 18 Lets Apps Be Placed Anywhere on Home Screen Grid

Sunday March 24, 2024 1:33 pm PDT by
iOS 18 will give iPhone users greater control over Home Screen app icon arrangement, according to sources familiar with the matter. While app icons will likely remain locked to an invisible grid system on the Home Screen, to ensure there is some uniformity, our sources say that users will be able to arrange icons more freely on iOS 18. For example, we expect that the update will introduce...
iPad Pro 2024 Landscape Camera Feature

New iPad Pro Again Rumored to Feature Landscape Front-Facing Camera

Monday March 25, 2024 5:43 am PDT by
The next-generation iPad Pro will feature a landscape-oriented front-facing camera for the first time, according to the Apple leaker known as "Instant Digital." Instant Digital reiterated the design change earlier today on Weibo with a simple accompanying 2D image. The post reveals that the entire TrueDepth camera array will move to the right side of the device, while the microphone will...
sonoma desktop wwdc

Apple Releases macOS Sonoma 14.4.1 With Fix for USB Hub Bug

Monday March 25, 2024 10:10 am PDT by
Apple today released macOS Sonoma 14.4.1, a minor update for the macOS Sonoma operating system that launched last September. macOS Sonoma 14.4.1 comes three weeks after macOS Sonoma 14.4. The ‌‌‌‌macOS Sonoma‌‌ 14.4‌.1 update can be downloaded for free on all eligible Macs using the Software Update section of System Settings. There's also a macOS 13.6.6 release for those who...
Generic iOS 18 Feature Purple

iOS 18 Will Finally Bring This Android Feature to iPhone

Monday March 25, 2024 6:42 am PDT by
iOS 18 will allow iPhone users to place app icons anywhere on the Home Screen grid, according to sources familiar with development of the software update. This basic feature has long been available on Android smartphones. While app icons will likely remain locked to an invisible grid system on the Home Screen, our sources said that users will be able to arrange icons more freely on iOS 18....
maxresdefault

Apple Announces WWDC 2024 Event for June 10 to 14

Tuesday March 26, 2024 10:02 am PDT by
Apple today announced that its 35th annual Worldwide Developers Conference is set to take place from Monday, June 10 to Friday, June 14. As with WWDC events since 2020, WWDC 2024 will be an online event that is open to all developers at no cost. Subscribe to the MacRumors YouTube channel for more videos. WWDC 2024 will include online sessions and labs so that developers can learn about new...
apple maps 3d feature

Apple Maps May Gain Custom Routes With iOS 18

Tuesday March 26, 2024 3:10 pm PDT by
Apple may be planning to add support for "custom routes" in Apple Maps in iOS 18, according to code reviewed by MacRumors. Apple Maps does not currently offer a way to input self-selected routes, with Maps users limited to Apple's pre-selected options, but that may change in iOS 18. Apple has pushed an iOS 18 file to its maps backend labeled "CustomRouteCreation." While not much is revealed...
iphone reasons to upgrade

Apple Outlines 'Reasons to Upgrade' Your iPhone on New Website

Monday March 25, 2024 12:53 pm PDT by
Apple today added a "Why Upgrade" section to its website, which is aimed at encouraging customers with older iPhones to upgrade to a newer model. The website allows customers to compare the iPhone 11, 11 Pro, 11 Pro Max, 12, 12 mini, 12 Pro, and 12 Pro Max to the iPhone 15, iPhone 15 Plus, iPhone 15 Pro, or iPhone 15 Pro Max. Each comparison shows what new features someone with an older...