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Taiwan's FTC fines Apple NT$20 million over iPhone pricing

Staff writer |
Apple has been fined NT$20 million ($663,332) by the Taiwan Fair Trade Commission for interfering with the pricing of the iPhone by three mobile carriers.

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The Fair Trade Commission found Apple's unit in charge of Taiwan sales violated article 18 of the Taiwan's Fair Trade Act by asking operators Chunghwa Telecom, Far Eastone Telecommunications and Taiwan Mobile to submit pricing plans for approval by Apple, which had also recommended changes in the prices.

Apple's agreements with the operators are said to have stipulated that subsidies these companies offer for buying iPhones with contracts cannot be lower than those of their competitors. (Here is a Chinese version of Commission's statement, and here's a translated version.)

Article 18 of the Fair Trade Act states "Where an enterprise supplies goods to its trading counterpart for resale to a third party or such third party makes further resale, the trading counterpart and the third party shall be allowed to decide their sale prices freely; any agreement contrary to this provision shall be void."

Apple could face an additional fine of up to NT$50 million if it fails to comply with the Commission's ruling that the its should immediately stop the practice of trying to control iPhone prices.

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