Taiwan Fines Apple $670,000 for Trying to Control iPhone Pricing

Posted December 25, 2013 at 10:54pm by iClarified | Please help us and submit a translation by clicking here | 11331 views

Taiwan has fined Apple $670,000 for telling retailers how much to sell the iPhone for in violation of the country's Fair Trade Act, reports the WSJ.

Apple told Taiwan's three main service providers, Chunghwa Telecom Co., Far Eastone Telecommunication Co., and Taiwan Mobile Co., to adjust rates. However, the commission said Apple has no right to meddle in companies' iPhone pricing plans after selling them distribution rights. The carriers can distribute or resell iPhones at their complete discretion after paying Apple for those rights.

"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," said the Fair Trade Commission.

The ruling applies to iPhones only and Apple can appeal but it may face an even larger fine if it doesn't comply.

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Bruce Lee - December 26, 2013 at 5:34pm
The Chine Make the iPhone and they can Destroy the iPhone, so you better watch out Tim Crook.
K - December 26, 2013 at 7:04pm
Chine?
Bruce Lee - December 27, 2013 at 12:33am
The Chinese Make the iPhone and they can Destroy the iPhone, so you better watch out Tim Crook. typed too fast on my iphone 5s.
K - December 27, 2013 at 12:57am
B/c it's poorly made in China? I'm saying that because of the benchmark China iPhone was in!
Tim - December 27, 2013 at 7:55am
Chinese and Taiwanese are separate or so they say
ipadguy - December 26, 2013 at 8:25am
This new app for iPad has a bunch of bugs but that's how it works and updates have a bunch of bugs anything new come with a bunch of bugs I love how technology just seems to almost work
Tim - December 26, 2013 at 6:38am
Apple could just retract distribution rights to them next year with new phone
Mab - December 26, 2013 at 9:47am
Greedy apple!
K - December 26, 2013 at 2:29pm
Greedy troll.
Mlutalo - December 26, 2013 at 5:58am
Thts why sumsung has no resell value ! They got no price control
scamster - December 26, 2013 at 12:10am
It's all about perception. With these carriers trying to undercut each other it's isn't just them losing out with reduced profit per iPhone sold, besides they only care about the contract the customer signs. Apple are trying to protect their product as they perceive it as a premium item, if sold cheaply it will not be seen as premium by the buying public this will damage Apple's image and brand they work hard to create and maintain. Don't blame them for protecting their premium status. Also if the iPhones are sold SIM free at a lower price it will create a grey market hurting other regions, China springs to mind. Most I'm sure will happy to get an iPhone cheaper even from another country. I'm sure these carriers signed an agreement with pricing being one of these stipulations but wouldn't be surprised if one or more of these carriers leaked the email through a third party.
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