“Apple is likely to face sanctions from the South Korean antitrust watchdog over dumping its advertising and repair costs to local telecom operators,” Cho Jin-young reports for BusinessKorea. “According to industry sources on April 8, the Fair Trade Commission (FTC)’s secretariat has recently decided to impose penalties on Apple Korea over the unfair practice and sent an examination report to Apple Korea to seek an explanation.”

“According to the examination report, the FTC reached the conclusion that the California-based company has abused its market power against South Korean mobile carriers and it should be fined and carry out a correction order for compulsory buying, compulsory benefits and offering disadvantages,” Cho reports. “Since Apple began selling the iPhone here in 2009, the company has been embroiled in allegations of unfair practices, including shifting advertising costs to local mobile carriers and getting telecom firms to host release ceremonies for new products. The smartphone maker is also under fire for ordering wireless providers to follow its own guidelines in designing ads without sharing the costs.”

“In addition, Apple Korea allegedly obligates them to bear repair costs and display stand installation costs and order a certain amount of products to sell in the country,” Cho reports. “In 2013, Taiwan slapped fines on Apple worth around 20 million Taiwanese dollars (US$683,068 or 700 million won) for controlling iPhone prices. In April 2016, France fined the company 48.5 million euros (US$59.39 million or 64 billion won) for having mobile carriers order a certain amount of products and pay for ads.”

Read more in the full article here.

MacDailyNews Take: The cost of doing business. Not controlling telecom’s iPhone advertising would be far worse (bad ads damage brands) than the meager fines these governmental commissions periodically demand.

SEE ALSO:
Apple offices in South Korea raided ahead of launch of iPhone X – November 24, 2017
Leaked texts reveal Samsung’s manipulation of South Korean media – August 24, 2017
Prosecutors seek 12 years in jail for Samsung heir – August 7, 2017
Samsung’s acting head Lee Jae-yong indicted on bribery charges as scandal grows – February 28, 2017
South Korean court approves arrest of Samsung heir Lee Jae-yong – February 16, 2017
South Korean prosecution again seeks arrest of Samsung chief – February 14, 2017
Samsung heir Lee Jae-yong escapes arrest in massive bribery scandal – January 20, 2017
South Korea attempting to handicap Apple by demanding the removal of preinstalled apps like the App Store – July 7, 2016
Korea Fair Trade Commission clears Samsung’s use of standard-essential patents against Apple – February 27, 2014
Taiwan’s Fair Trade Commission fines Apple $666,700 over price restrictions – December 26, 2013
South Korea, the Republic of Samsung – December 10, 2012
Welcome to South Korea, the ‘Republic of Forgery’ – September 11, 2012
Samsung’s ‘Instinct’ is obviously to make Apple iPhone knockoffs – April 1, 2008