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Taiwan Authorities Hit Apple with Fine for Interfering with iPhone Pricing with Three Telecom Providers and Threatens more Action

10. News
News out of Taipei today is stating that Taiwanese authorities have slapped Apple with a $667,000US fine for violating a fair trade law over local iPhone pricing. The Fair Trade Commission said an Apple unit in charge of Taiwan sales has interfered in the pricing and mobile phone payment rates of three local telecom service providers, despite selling them the distribution rights to the phones.

 

The report further states that the Taiwanese authorities have specifically stated that their investigations had found that Chunghwa Telecom, Far Eastone Telecommunication and Taiwan Mobile had submitted their pricing plans to Apple for approval or confirmation before new models hit the market, while Apple had also asked the Taiwanese companies to change or adjust prices.

 

In-part, the commission claimed in a formal statement that "Apple deprived the telecom operators of liberty to decide on the prices based on their own cost structures and competitive market situation, to restrict competition ... and violate the fair trade law."

 

The commission is urging Apple to immediately stop its illegal actions. Accordingly, the commission stated that while Apple could appeal the ruling, that they could ultimately face an additional fine of up to 50 million Taiwanese dollars ($1,667,600.000 US Dollars) if they fail to promptly comply.

 

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