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Apple fined $666K USD for fixing iPhone prices in Taiwan


Apple has been fined NT$20 million ($666,800 USD) by Taiwan Trade commission for controlling its iPhone’s prices at local stores and providing fixed pricing plans to mobile operators.

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As Apple controlled the prices of iPhones in local stores, it broke Taiwan’s free-trade laws which attracted a fine of NT$20 million. The antitrust agency will issue an official document to the Cupertino-based Apple Asia unit to halt the practice or face several other charges.

According to the antitrust agency, Apple has violated Article 18 of Taiwan’s Fair Trade Act as it had disallowed three mobile operators from fixing their own prices for iPhone under contract. Chunghwa Telecom, Far Eastone Telecommunications and Taiwan Mobile were also asked to submit their pricing plans to Apple for approval and recommended changes in the operators pricing plans.

Apple will be further fined if continues with its interference with the operators on the pricing plans. For continued vilation of Fee-trade policy, Apple could attract a fine of NT$50 million, as mentioned in the report.

“The commission’s ruling makes Taiwan, the first country to fine Apple Inc’s subsidiaries concerning their handset distributor’s pricing, while there is a similar ongoing investigation concerning Apple for impeding competition in Europe,” said Sun Lih-chyun, Commission Vice Chairman in a statement to Taipei Times.

The commission had also raised an inquiry into the same pricing set by the the three carriers.Sun added that these three mobile carriers sold 90 percent of iPhones in Taiwan, as they were the major distributors of the devices.  Taiwan contributes 1 percent to Apple’s global iPhone sale.

[Via]


About John W Arthur

john@thenextdigit.com'
John is the head of our IT Security team and he writes about Security, IT news on The Next Digit. He was the Employee of the Year 2013 for his selfless support and efficiently setting up the whole security infrastructure. He also occasionally writes on "IT Sec Pro" Print Media of Sweden. All posts by John

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