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