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Apple Hit With $647K Fine for Requiring Taiwanese Carriers to Seek Approval for iPhone Pricing

Apple Hit With $647K Fine for Requiring Taiwanese Carriers to Seek Approval for iPhone Pricing

Apple has been hit with a $647,000 USD fine for requiring Taiwanese carrier to get pricing approval from the company for iPhone plans. The company was accused in the Taiwanese court of anti-competitive phone pricing tactics.

Apple Hit With $647K Fine for Requiring Taiwanese Carriers to Seek Approval for iPhone Pricing

AppleInsider:

In particular Apple was said to have imposed contract prices for the iPhone 4, 4S, 5, and 5s. It also allegedly claimed final say over iPhone subsidies, ad content, and price gaps between older and newer models.

The fine was previously issued by Taiwan’s Fair Trade Commission. Reuters notes that Apple launched a countersuit, but lost.

Apple’s way of doing business is common in many countries the company sells phones in, however under Taiwanese law, the carrier owns the phones it is selling, and is free to set whatever price it wants.

Apple hasn’t commented on the fine, and has yet to announce whether it will file an appeal in the case.

Apple’s iPhone had a 32% marketshare in Taiwan as of the December quarter, according to International Data Corp. AppleInsider notes that many of the company’s partners are headquartered in the company, including Foxconn, Pegatron, and TSMC.

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