Apple is paying millions of dollars to correct its unfair practices
Apple is paying millions of dollars to correct its unfair practices

Antitrust authorities said Monday that Apple has promised to give millions of users the right to correct their unfair business practices in South Korea.

The company decided to share advertising costs with mobile phone operators and donated 100 billion won ($ 84 million) to help small and medium-sized businesses.

The Fair Trade Commission (KFTC) said that after submitting the request for contract approval on June 4, the US technology giant through numerous written consultations and negotiations with Apple had prepared South Korea for an initial deal.

"The South Korean company, Apple, is currently under investigation by the Fair Trade Commission (KFTC). It accuses Apple of misusing its dominant position and forcing cellular companies to pay advertising costs and warranty repairs," she added.

The KFTC said Apple has agreed to correct unfair practices with telecom companies. As part of its proposal, the company discussed how advertising costs could be shared with carriers in order to reduce the burden on carriers.

Out of the 100 billion won, Apple has pledged 40 billion won to set up a small R&D support center for South Korean manufacturers and has pledged to invest 35 billion won to set up a developer training academy.

Another 25 billion won will be used to provide consumers with repair fees, AppleCare services and other preferential discounts.

If, after consulting the public, Apple finds an appropriate remedy for unfair business practices, the regulator will close the case and continue to determine whether Apple has committed any illegal activity.

According to Counterpoint's data, Apple gained 18% of the market share in 2019 in South Korea, the main market for Korean mobile phones. Samsung is the core business of Samsung which controls 65% of the market share.

The Fair Trade Commission lasts 40 days from August 25 to October 3. It collects stakeholder opinions, requests written consultations with the Attorney General, seeks opinions of relevant ministries, and provides advice and decision-making within the Fair Trade Committee. After completing the transaction.

Apple is facing antitrust pressure in other countries. French regulators imposed a fine of 1.1 billion euros ($ 1.23 billion) on Apple in March of this year. IPhones are held responsible for unfair practices in distribution and retail networks.

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