On November 23rd Patently Apple posted a report titled "South Korean Authorities have Raided Apple's Offices Prior to the Launch of iPhone X in their Country." Earlier in November we had posted another report that noted France imposed a US$5.7 million fine on Apple last April for having mobile carriers pay for advertisements.

Today we're learning about what the South Korean Fair Trade Commission is investigating Apple for in more detail. The agency is to probe into Apple's business practices, including unfair retail contracts, high pricing policies and now the added charge of forcing telecoms to develop a custom iOS computer system just for Apple products.

Today's Korean report stated that Apple has reportedly been asking Korea's top three telecom carriers (SK Telecom, KT and LG Uplus) to develop a new sales system for the iPhone only at their own expense.

Currently, the three telecoms use a Windows based system to sell their service plans for all new phones, Android and iPhone. But Apple is demanding that the telecoms set up a separate iOS-based system and use its own iPad tablet when selling iPhones.

Sources say Apple wants the new system to be set up and running before its first flagship store opens in Seoul early next year.

One retails shop owner told the publication that "Apple is making unfair demands. The system handles sensitive personal information. In order to stabilize the system, it would take months (to develop), not to mention the extra costs."

Sources say building a new system could cost some millions of dollars for each telecom carrier. Telecom carriers are bewildered by the unprecedented demands from their key client.

One of the telecom executives not wanting to be identified told the publication that "Telecom carriers may not be able to resist Apple's demands considering loyal customers of iPhone and the already heated competition among them. We have no other option but to accept their demands."

Apple has been criticized for its unfair business practices with Korean partners. It is forcing telecom carriers to shoulder all the marketing costs for new iPhone launches, while asking retail shop owners to follow their display rules even though they sell other brand phones.

The report concluded by stating that "A spokesperson for Apple Korea has yet to respond," to the news. Yet considering that they're presently under investigation by Korea's Fair Trade Commission without fully understanding the full scope of the probe, it would be both unwise and unprofessional to make any public statements at this time.

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