Apple Proposes Remedies for Unfair Trade Practices

August 25, 2020 12:27

Apple is to spend W100 billion in an effort to assuage the Fair Trade Commission, which accuses it of forcing mobile providers to shoulder advertising costs and subsidize phone repairs (US$1=W1,188).

Under a tentative agreement unveiled by the FTC on Monday, Apple’s Korean office here will spend W25 billion on a 10-percent discount on handset repairs as well as a 10-percent discount or refunds to customers signing up for an extended warranty program.

Apple staff get ready to help customers in its flagship store in Seoul on Monday. /Yonhap

It will also spend W40 billion to set up a research and development center in Korea, W2.5 billion to set up a developer academy here and another W10 billion to build a library on digital education.

Apple pledged to mend its ways, saying it will discuss advertising costs with the mobile providers, transparently reveal spending while ceasing to charge them for repairs and scrap a clause authorizing arbitrary contract cancellations.

The FTC will present Apple’s remedial plan to mobile service and other related groups for review until Oct. 3. If they deem it acceptable, the FTC will close the probe without citing any violations.

The FTC launched its probe last year and gave Apple until June to come up with remedial measures.

One staffer at a mobile provider said, “It’s great that Apple realized its wrongdoings and came up with corrective measures. I hope the problem can be resolved and we can maintain an amicable relationship.”

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