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Apple given another month to unveil steps to correct anti-competitive practices

All News 09:41 July 28, 2020

SEJONG, July 28 (Yonhap) -- South Korea's antitrust regulator said Tuesday it has given Apple Korea another month to announce a set of measures to address its anti-competitive business practices here.

The Fair Trade Commission ordered the local unit of global tech giant Apple Inc. on June 17 to come up with its own steps to correct those practices within a month.

Apple Korea is accused of having required the country's three mobile operators -- SK Telecom Co., KT Corp. and LG Uplus Corp. -- to pay the cost of television advertisements and warranty service for its iPhones.

"The deadline has been delayed by another month to hold more discussions (between Apple Korea and the FTC) on details," a commission official said.

Apple given another month to unveil steps to correct anti-competitive practices - 1

Apple Korea and the antitrust regulator are reportedly fine-tuning the details after agreeing on a broad framework for the company's corrective plan.

Earlier, Apple Korea proposed holding consultations with South Korean mobile phone carriers to reduce their burden and share advertising costs.

Apple Korea also suggested it would put forward measures to ease other unfair business practices with the mobile phone carriers and to create a fund meant for mutual benefits of relevant parties, including consumers.

The commission has said Apple holds a clear advantage over local mobile carriers and that handing over the cost of advertisements is only another means to squeeze their profits.

The FTC official said the two sides will come up with a preliminary corrective scheme in late August and hear opinions from the interested parties and government ministries before the commission's final approval.

South Korean law allows a company accused of anti-competitive practices to state a correction scheme without deliberating whether those practices violate the country's competition law.
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