iPhone-Taiwan

The Wall Street Journal reports that Taiwan’s Fair Trade Commission has fined Apple approximately US$670,000 for its attempts to influence phone pricing set by distributors and service providers in the region. According to a statement from the commission, Apple was forcing at least three carriers to submit pricing plans for iPhone ahead of offering the devices for sale:

“Through the email correspondence between Apple and these three telecom companies we discovered the companies submit their pricing plans to Apple to be approved or confirmed before the products hit the market,” it said in a statement.

The report adds that Apple could face an additional fine of NT$50 million (around $1.7 million US) if it doesn’t change its current methods of negotiating iPhone pricing plans with carriers:

It found the Cupertino-based company violated article 18 of Taiwan’s Fair Trade Act by telling Taiwan’s three main service providers how much to sell iPhones for. Apple also asked Chunghwa Telecom Co., Far Eastone Telecommunication Co. and Taiwan Mobile Co. to adjust rates.

The U.S. computer company has no right to meddle in companies’ iPhone pricing plans after selling them distribution rights, the commission said. The three carriers can distribute or resell iPhones at their complete discretion after paying Apple for those rights, the commission added.

Apple will have the opportunity to appeal the ruling, but that could leave it subject to the additional $1.7 million in fines if it decides not to comply with the commission’s request.

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9 Responses to “Apple fined $670k by Taiwan Fair Trade Commission over iPhone plan pricing”

  1. towamp says:

    Screw them… Apple should buy Tawain /s

  2. elder Signin says:

    Another example of Asias screw everyone laws. Steal, copy, do what ever you want cause we feel we can do what ever we want. And that includes buying them elsewhere and selling them (or even cheap knockoffs) for what ever the market will bear.

    • weakguy says:

      I don’t see how this is related to the article. Would you mind to explain it a little bit more?

      • myke2241 says:

        he is describing the lack of over site and regulation that occurs in more asian countries. if Samsung were to do this SK may turn its head. there have been stories of Samsung and other large SK companies getting special treatment. I see this as retaliation from the US court case. its BS, you know it and i know it. what company doesn’t talk directly to distro about pricing. that is want companies do to keep disco honest. Apple would see fit to cut those companies who don’t want to play by the rules out of the chain sooner then later.

  3. klepp0906 says:

    Good. They deserve it. Unfortunately I’d venture that 670k is less than an hours wages for Apple.

    I sure wish I got fined an hours wages for speeding, much less a transgression vs an entire demographic.

    The guys making these penalties are the same guys taxing billionaires the same 40% they tax people who make 75k a year.

    Go go USA! Wtb more bush! Oh and pls blame Obama moor for trying to clean up the mess left to him! Getting off topic here, but I hate niggnoggs as bad as the other guy.

    Still it isn’t so blind that I blame a good man due to nothing other than his skin color. Best president since Clinton!

  4. Ian Grant says:

    And Apple is grateful for the opportunity to clean some loose change from behind the cushions.

  5. They should do it to Israel.
    Here you pay 1050$ for and iPhone 5S.