Apple Found Guilty of Anti-Competitive Practices in Taiwan

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Posted June 17, 2015 at 3:24pm by iClarified

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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Apple Found Guilty of Anti-Competitive Practices in Taiwan

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BobbySorloss - June 17, 2015 at 5:59pm

Apple was found anti competitive and fined for it. Remember the e-book rigging scandal.... Please think before you say something careless like you almost every time do ....... Pleeeease

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Woz - June 17, 2015 at 5:48pm

I wonder how much microsuck and Google paid Taiwan to do this. Apple is never anti competitive unless you think making the greatest hardware and software that never breaks, never have flaws, and can never be hacked is anticompetitive.

BobbySorloss - June 17, 2015 at 5:55pm

Please be real, they break, have software and hardware flaws (really think hard for a while and it will come back to you) and are hacked since the first one on the market (jailbreak does ring a bell?)

The car lover - June 18, 2015 at 4:09am

I guess you're forgetting the home button issue that affected the 3GS and the antenna issue that affected the 4 at launch. And now the text message that crashes crashes the phone are some issues that come to mind. Nice products, but far from perfect.

The car lover - June 18, 2015 at 8:06am

Lol..... I had a 3gs with an iffy home button and when I purchased the 4S I took up the offer of the free bumper case, the antennas need to be placed where hands will not impede performance. It's not difficult. Samsung didn't pay me anything to experience those issues Ya loon.