Apple faces fine for unfair practices in Korea

By Kang Seung-woo

The nation's antitrust regulator is set to fine Apple for its “unfair” business practices.

Apple CEO Tim Cook / AP-Yonhap

According to the mobile industry, Sunday, the Fair Trade Commission (FTC)'s secretariat has decided to impose a fine on the Korean unit of the global smartphone giant due to the reasons cited and sent its examination report to the company.

After receiving an explanation of the issue, the FTA plans to hold a meeting to determine what type of penalty should be applied to Apple. The whole process could take up to two months.

According to the examination report, the FTC reached the conclusion that the California-based company has abused its market power against Korean telecom companies.

Since Apple began selling the iPhone here in 2009, the company has been embroiled in allegations of unfair practices, including shifting advertising costs to local mobile carriers and getting telecom firms to host release ceremonies for new products.

The smartphone maker is also under fire for ordering wireless providers to follow its own guidelines in displaying products and designing ads without sharing the costs. It allegedly obligates them to order a certain amount of products to sell in the country.

Apple is also facing complaints here that Korean consumers have to pay 200,000 won ($187) more than American and Japanese customers for the iPhone X.

The 64 GB model costs 1.36 million won and the 256 GB handset, 1.55 million won, in Korea.

Amid the allegations, the FTC began an investigation into them in 2016, and last November searched the offices of Apple Korea for the first time.

Unlike Korea, other countries have taken a hard stance on Apple's unfair practices.

In 2013, Taiwan slapped fines on Apple worth around 700 million won for controlling iPhone prices. In April 2016, France fined the company 48.5 million euros (64 billion won) for having mobile carriers pay for ads.