A PYMNTS Company

South Korea: Regulator says Apple is exploiting wireless carriers

By  |  January 22, 2019

Apple is taking advantage of South Korean carriers by collecting money for ads, the country’s Fair Trade Commission (KFTC) stated during a hearing on the iPhone maker’s business practices.

    Get the Full Story

    Complete the form to unlock this article and enjoy unlimited free access to all PYMNTS content — no additional logins required.

    yesSubscribe to our daily newsletter, PYMNTS Today.

    By completing this form, you agree to receive marketing communications from PYMNTS and to the sharing of your information with our sponsor, if applicable, in accordance with our Privacy Policy and Terms and Conditions.

    “Apple’s [superior] position in business dealing with local telecom firms is recognized based on economic analysis. [Apple] collecting advertising funds are merely additional ways of exploiting telecom carriers’ communications service profits,” KFTC investigators said in a closed hearing last Wednesday, January 16, only detailed Monday in a public statement seen by The Korea Herald.

    The KFTC brought the case against Apple Korea because it believes the tech company has unfairly passed on the costs of iPhone sales to local mobile carriers. These include the costs of advertising, launch events, and repairs. The Wednesday hearing was Apple’s chance to defend itself.

    During the hearing, KFTC Chairman Kim Sang-jo reviewed the issue from an economic perspective. Both the KFTC and Apple brought in economists to testify for their respective sides.

    Full Content: Korea Herald

    Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.