Many major manufacturers have regular antitrust issues where they have to pay millions of dollars in settlement. Apple is no different, in fact, it faces a lot of legal controversy every year. Of course, we would expect it given the size of its activities. Now, the last antitrust issue Apple is facing is in South Korea and it can pay over $ 80 million.
According to South Korean antitrust regulator, Apple’s South Korean subsidiary is suggests measures to address antitrust problems. In its proposal, the company would have to spend up to 100 billion won (approximately $ 84.02 million). Apple will use this fund to support projects by South Korean small businesses, consumers and others.
Prior to that, Apple Korea was under investigation by the Korea Fair Trade Commission (KFTC). The investigation is due to the claim that Apple is abuse of its dominant position in the market. There have been reports that the American company is forcing local mobile providers to bear the cost of advertising and warranty
Korea’s Fair Trade Commission says Apple has agreed to amend its “unfair” terms with operators. For example, the company will discuss with telecommunications companies how to share advertising costs. This will also help reduce the burden on operators.
Apple will not investigate if its proposal is accepted
Of Apple’s 100 billion won ($ 84 million), 40 billion won ($ 42 million) will be used to build a R&D support center. This center will only support small Korean manufacturers. In addition, another 25 billion won ($ 21 million) will be allocated to build a “Academy” to provide training to developers. The last 25 billion won ($ 21 million) will be used to give consumers discounts on warranty costs as well as other benefits.
According to the KFTC, it will not only make the final decision on the investigation. The Korean Fair Trade Commission has said it will jointly request Apple’s proposal. If the public believes that the proposed solutions are reasonable, then the case will be closed. In fact, he will no longer need to investigate the case. This means that there will be no decision if Apple has committed violations. However, if the public rejects Apple’s proposal, then the company should either support its offer or face research.
According to market research firm Counterpoint, Apple accounted for 18% of the Korean mobile phone market last year. However, it is far behind Samsung Electronics which has 65%.