Korea FTC Allows Apple to Draw Up Measures to Correct Anti-Competitive Practices

South Korea's antitrust regulator has decided to allow Apple to map out a set of measure to address its anti-competitive business practices in the country, reports the Korea Herald.


The Fair Trade Commission investigated Apple Korea for requiring SK Telecom, KT Corp, and LG Uplus Corp to pay the cost of television advertisements and warranty service for its iPhones.

The investigation found that Apple holds a clear advantage over local mobile carriers and that handing over the cost of advertisements was another means of squeezing the profits of the carriers, according to the report.

The law requires that Apple comes up with a correction scheme necessary to restore competition practices or to improve business practices. The commission said it will review detailed corrective measures crafted by Apple Korea and decide whether to approve them.

Apple Korea welcomed the commission's decision and issued the following statement.

"We don't believe we have done anything wrong but are happy to put this process behind us so we can focus on doing even more for our customers and communities," Apple Korea said in a statement.

Apple has faced criticism over its business practices in the country before. In April, the FTC ordered the company to change unfair provisions in its contracts with certified repair service partners which stipulated that the firms could not file lawsuits against Apple within a year after any dispute.

The repair service partners were seen to have little choice but to agree with the terms, due to the market power of Apple's iPhones. Apple complied with the FTC order and changed the contracts.

In 2015, the FTC also ordered Apple to allow customers refunds for repair services.

Top Rated Comments

(View all)
Avatar
19 weeks ago
If it’s for Apple’s iPhone ads that show the carrier’s name at the end for a split second then it’s not fair that carriers bear the full cost or even half of it. If you blink you’ll miss the carrier’s name.
Score: 2 Votes (Like | Disagree)
Avatar
19 weeks ago


Carriers can't sell the iPhone unless they also run/pay for iPhone ads.

That’s true for any business. If you want people to know you sell something you need to advertise it. People want the iPhone, and more than one carrier has it. So Apple doesn’t need to advertise it they can let the carriers fight over doing so.


Hard to say from the press releases. Although one sounds like Apple Korea is requiring the Korean telecoms to pay for Apple's marketing in that country. Not the telecoms marketing of the iPhones but Apple's marketing. I expect more will be know if they go to court and don't settle.

"As Apple does not allow mobile carriers to offer subsidies for iPhones, they may have been forced to pay for Apple Korea's marketing activities," said another source.
http://www.koreatimes.co.kr/www/news/tech/2016/06/133_207542.html

So they were locked from doing business as normal and they found an alternative to raising prices. Meanwhile, the carrier that works the hardest pushing the device sells more lines. It sounds like Korea is upset because Apple followed the letter of the law.


Should carriers also be expected to shoulder the cost of repairs?

If they want to offer that service, yes.
Score: 1 Votes (Like | Disagree)

Top Stories

First iPhone 12 Mini Hands-On Video Surfaces [Update: Video Pulled]

Wednesday October 28, 2020 1:21 pm PDT by
Apple's iPhone 12 mini and the iPhone 12 Pro Max aren't set to be available until November 13, but a Romanian YouTuber got his hands on the iPhone 12 mini and showed it off today, offering a size comparison between the iPhone 12 and the 12 mini along with going over some of the device's features. The iPhone 12 mini is identical to the iPhone 12 in design and functionality, but it has a...

Apple References Unreleased 2020 16-Inch MacBook Pro in Boot Camp Update

Monday October 26, 2020 8:42 am PDT by
Last week, Apple released an update for Boot Camp, its utility for running Windows on a Mac. While this update would typically be unremarkable, several of our readers noticed that the release notes reference an unreleased 2020 model of the 16-inch MacBook Pro. While this could easily be a mistake, the 16-inch MacBook Pro is nearly a year old, so it is certainly a worthy candidate for a...

After Mocking Apple, Samsung May Remove Power Adapter From Galaxy S21 Box

Tuesday October 27, 2020 4:29 pm PDT by
Samsung's Galaxy S21, coming in 2021, may not include a power adapter or headphones in the box, according to reports from Korean media sites highlighted by SamMobile. Rumors earlier this year also said that Samsung was considering removing these accessories from future smartphone models, but that didn't stop Samsung from mocking Apple for selling the iPhone 12 models without a power adapter...

Report: Apple Silicon iMac Featuring Desktop Class 'A14T' Chip Coming First Half of 2021

Tuesday October 27, 2020 4:14 am PDT by
The first iMac powered by Apple Silicon is set to arrive in the first half of next year and will feature a desktop class "A14T" chip, according to Chinese-language newspaper The China Times. Codenamed "Mt. Jade," Apple's first custom-made desktop processor will be twinned with its first self-developed GPU, codenamed "Lifuka," both of which are being produced using TSMC's 5-nanometer process, ...

iPhone 12 Ceramic Shield Still 'Scratches at Level 6 With Deeper Grooves at Level 7' in Mohs Hardness Test

Wednesday October 28, 2020 7:10 am PDT by
iPhone 12 and iPhone 12 Pro models feature a new Ceramic Shield front cover that is "tougher than any smartphone glass," according to Apple, but the displays on the devices still have similar scratch resistance as previous iPhones based on a new test. Zack Nelson today shared his much-anticipated iPhone 12 Pro durability test on his YouTube channel JerryRigEverything, and based on the Mohs...

2020 iPad Air vs. iPad Pro: Hands-On Comparison

Tuesday October 27, 2020 3:03 pm PDT by
Apple announced the new 2020 fourth-generation iPad Air in September, but the new tablets just started shipping out to customers last Friday. We picked one up and thought we'd do a hands-on comparison with the iPad Pro, which was last updated in March, because both tablets are about as powerful and share many similarities. Subscribe to the MacRumors YouTube channel for more videos. Design and ...

MagSafe Charger Only Charges at Full 15W Speeds With Apple's 20W Power Adapter [Updated]

Monday October 26, 2020 3:38 pm PDT by
Alongside the iPhone 12 and 12 Pro models, Apple introduced a new MagSafe charger that attaches to the magnetic ring in the back of the devices, providing up to 15W of charging power, which is double the speed of the 7.5W Qi-based wireless charging maximum. Apple does not provide a power adapter with the $39 MagSafe charger, requiring users to supply their own USB-C compatible option. Apple...

Apple Files Mystery 'Personal Computer' With Placeholder 'B2002' Name in Bluetooth Product Database

Tuesday October 27, 2020 12:36 pm PDT by
Last week, a listing appeared in the Bluetooth product database for an Apple product with a placeholder name "B2002" and a model number of "TBD." MacRumors was alerted to the listing by health and fitness tech website MyHealthyApple. The product is filed under the "personal computer" category, which Apple has used for previous Mac and iPad listings in the database, so it is hard to pinpoint...

Apple Releases First macOS Big Sur 11.0.1 Beta to Developers [Update: Public Beta Available]

Wednesday October 28, 2020 10:15 am PDT by
Apple today seeded a new macOS Big Sur 11.0.1 beta to developers for testing purposes, with the new beta replacing the existing macOS Big Sur 11 beta 10 update that was released two weeks ago. The macOS Big Sur beta can be downloaded through the Apple Developer Center and once the appropriate profile is installed, subsequent betas will be available through the Software Update mechanism in...

iPhone 12 Models Might Support Reverse Charging of Future Apple Accessories According to FCC Filing

Tuesday October 27, 2020 6:25 pm PDT by
iPhone 12 models could have an inactive wireless charging feature for accessories, according to an FCC filing discovered by VentureBeat's Jeremy Horwitz. In the filing, Apple said that 2020 iPhones support a wireless charging function that will seemingly be enabled for at least one future Apple accessory:In addition to being able to be charged by a desktop WPT charger (puck), 2020 iPhones...