Apple found guilty in influencing iPhone prices in Taiwan
Apple fined $667 000 for signing pricing agreements with carriers in Taiwan
Taiwan’s fair Trade commission has fined Apple for trying to interfere the iPhone prices in the country. According to WSJ, Apple has tried to influence the market prices by signing pricing plans with some of the largest wireless providers in Taiwan. $667K is the initial fine, but it can reach $1.6 million if a possible non compliance is taken into account.
It seems that Apple insisted these pricing plans to be signed off which is against the Taiwanese law. According to the law, all wireless providers must be free from any corporate influence. The only agreement allowed to exist is the agreement regulating the distribution rights in the county which has already been signed. The publication in the Wall Street Journal reveals that Apple will have time to submit an objection against the decision of the Taiwanese Trade commission. At present, Apple’s move is unknown. Probably, the company will respond to the decision within days.
Apple is in a similar position as Samsung earlier in 2013. The major smartphone manufacturer was found guilty in running misleading ads for its Samsung Galaxy Y Duos model, which was claimed to be with an autofocus camera and a flash. However, Samsung fine was significantly lower (just around $10k) than Apple’s $667k. Later, Samsung was investigated for another ad campaign, attacking the local manufacturer HTC.
However, both companies are quite unlikely to be influenced by these fines. As we know, the leading OEMs have large amounts of cash for reserves and they are well prepared to meet different regulatory fines around the world. It is just part of the game.
Source: The Wall Street Journal