The Korea Herald


Apple pledges W100b to correct unfair practices

By Shin Ji-hye

Published : Aug. 24, 2020 - 13:34

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Apple has pledged 100 billion won ($84 million) to correct its business practices in South Korea by sharing advertising costs with mobile carriers and by supporting small and medium-sized enterprises, the antitrust watchdog said Monday.

The Fair Trade Commission said it had prepared a tentative agreement through consultations with Apple Korea after the US tech giant applied for a consent order June 4.

The consent order initiated a process to close an FTC case against Apple by voluntarily agreeing to take corrective action.

Under the agreement Apple will improve its procedures related to advertising funds with telecom operators, operating “transparently and fairly.” It will also delete the clause in its contract that requires carriers to pay for guaranteed repair costs.

As for the donation, 40 billion won will be used to establish a research and development support center in manufacturing for SMEs, and 35 billion won will be used for education in collaboration with social enterprises. The remaining 25 billion won will be used to give iPhone users discounts on repair costs and AppleCare services.

The FTC will collect opinions from stakeholders for 40 days from Aug. 25 to Oct. 3. It will also seek written consultations with the prosecutor general and gather opinions from related ministries. The agreement will then be finalized after the FTC deliberates.  

By Shin Ji-hye (