The Fair Trade Commission in Taiwan has hit Apple with a $670,000 fine for meddling with the iPhone pricing of both mobile providers and handset retailers.
The commission accused Apple of violating the nations Fair Trade Act by advising mobile carriers on how much they should charge for iPhones, stating that Apple had no right to govern how the carriers sold iPhones after having sold the carriers distribution rights.
The Wall Street Journal reports that the fines involved resale and distribution rights in addition to pricing. The commission reportedly maintained that Taiwan’s three major carriers Chunghwa Telecom, Far Eastone Telecommunication, and Taiwan Mobile “can distribute or resell iPhones at their complete discretion after paying Apple for those rights.”
The decision applies only to iPhones, and no other products Apple sells.
Discovery of the requirement by Apple that the three telecom companies submit their pricing plans for Apple’s approval came from the email correspondence between Apple and the companies.
Apple hasn’t responded to the FTC’s actions, however it can appeal the ruling. If Apple doesn’t comply with the decision, it can be subjected to even larger fines.
