South Korea: Regulator says Apple is exploiting wireless carriers

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.

“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

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