A Taiwan court has found Apple guilty of anti-competitive practices and will fine the company T$20 million or about $647,124 USD, reports Reuters.
The island's Fair Trade Commission had previously levied the fine against the Silicon Valley firm for requiring its major Taiwan telecom partners to receive approval for pricing plans for its wildly popular iPhone series in advance of public release, in violation of Taiwanese law. Apple subsequently countersued and lost the suit.
"Apple limited telecoms from setting contract price for its 4, 4S, 5 and 5S models, which is against the law," commission spokesman Chiu Yung-ho told Reuters.
The iPhone is typically sold via contracts with one of Taiwan's three major carriers: Chunghwa, Taiwan Mobile, and Far EasTone. In Taiwan, telecom companies have the right to the phones they sell and can set prices as they see fit. "When the phone is transferred to a third party telecom, the vendor loses its right to set prices," said Chiu.
Apple had been forcing the carriers to get its approval on contract pricing, subsidies, price differentials between old and new models, and advertising content. It's currently the most popular smartphone vendor in the country with 32% market share.
It's unclear if the company plans to appeal the ruling.
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The island's Fair Trade Commission had previously levied the fine against the Silicon Valley firm for requiring its major Taiwan telecom partners to receive approval for pricing plans for its wildly popular iPhone series in advance of public release, in violation of Taiwanese law. Apple subsequently countersued and lost the suit.
"Apple limited telecoms from setting contract price for its 4, 4S, 5 and 5S models, which is against the law," commission spokesman Chiu Yung-ho told Reuters.
The iPhone is typically sold via contracts with one of Taiwan's three major carriers: Chunghwa, Taiwan Mobile, and Far EasTone. In Taiwan, telecom companies have the right to the phones they sell and can set prices as they see fit. "When the phone is transferred to a third party telecom, the vendor loses its right to set prices," said Chiu.
Apple had been forcing the carriers to get its approval on contract pricing, subsidies, price differentials between old and new models, and advertising content. It's currently the most popular smartphone vendor in the country with 32% market share.
It's unclear if the company plans to appeal the ruling.
Read More