By Lee Min-hyung
The nation’s antitrust watchdog has rectified Apple Korea’s unfair repair policies, putting an end to growing customer complaints that the iPhone maker was “too bossy” in business operations here.
The Fair Trade Commission (FTC) said Thursday it has rectified a total 20 unfair provisions in contracts between Apple Korea and its official repair service providers.
This comes about four months after the watchdog launched an investigation of the company’s repair policies which customers and repair firms claimed undermined their rights.
The previous provisions included “Apple Korea can terminate or modify contracts with its repair service providers without prior notification.” But Apple is now required to give advance notice.
Another controversial provision was that Apple Korea did not allow repair firms to translate their English contracts into Korea, even though the U.S.-based IT giant operates business here under the domestic legal system. The FTC rectified the provision, saying “Korean version of contract can also be provided.”
Apple’s repair companies were not allowed to file lawsuits against Apple Korea a year after controversial incidents, but this provision won’t be in effect anymore, the watchdog said.
“An official from Apple headquarters visited the FTC and actively cooperated to revise such unfair terms of the contract,” Min Hye-young, an FTC official in charge of contract reviews, said in a briefing.
This is the first time that an Apple overseas branch has revised its contract terms.
“Our latest decision will pave the way for protecting the rights of both customers and Apple’s repair service operators, and build a fair trade ecosystem,” she said.
The revised terms will be applied to all Apple products, including iPhones, MacBooks and Apple Watches, according to the FTC.
“Last year, we rectified a provision that states Apple customers cannot request a refund over repair service costs,” she said. “We are going to continue to revise unfair provisions.”
Apple Korea’s six official repair service providers are UBase, Dongbu Daewoo Electronics Service, Peach Valley, Beyond Tech, Tuva and Jongro Mac System.
In December, FTC Chairman Jeong Jae-chan said in a meeting with reporters that the watchdog would review Apple Korea’s provisions in contracts it had signed with local repair service operators.