Taiwanese FTC fines Apple $666K for iPhone pricing practices

By | December 26, 2013

Apple inc.

Taiwan’s Fair Trade Commission (FTC) fined Apple Inc $666,700 after determining the company has been illegally interfering with iPhone pricing charged by local telecom carriers for their iPhone contracts.

The regulator said that Apple was telling Taiwan’s three primary mobile-service providers how much to charge for iPhones. This practice was found in violation of Taiwan’s free-trade laws. Apple Asia also told carriers to alter service contract prices and subsidy prices, according to an FTC statement on Wednesday, leading to the fine of T$20 million. Once Apple sells distribution rights to an iPhone stockist, it has no right to dictate how much carriers and companies sell the devices for.

The three carriers, Chunghwa Telecom Co Ltd, Taiwan Mobile Co Ltd and Far EasTone Telecommunications Co Ltd, had all obtained reseller rights under their contracts with Apple, which gave them the right to set prices, FTC spokesman Sun Lih-chyun said.

According to the FTC’s statement: “Through the email correspondence between Apple and these three telecom companies we discovered the companies submit their pricing plans to Apple to be approved or confirmed before the products hit the market.”

SOURCE: Taiwanese FTC

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