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Apple Offers Competition Remedies in South Korea

The South Korean Fair Trade Commission accepted the competition remedies offered by Apple related to iPhone.

The issue of competition is related to the abuse of market power in the marketing of products of that brand of telephone.

In short, Apple is focused on expanding its market opportunities related to smartphones, personal computers, tablets and other electronic devices and services.

Within this framework, Apple offered to give 90 million dollars to build a research and development center for small and medium-sized local companies in the cell phone manufacturing sector.

It also undertook to operate an information and communication technology training center.

Competition

However, the company faces substantial competition in the markets in which it operates from companies that have significant technical, marketing, distribution and other resources, as well as established hardware, software and service offerings with a large base. Of customers.

Additionally, some of Apple’s competitors have broader product lines, lower-priced products, and a larger installed base of active devices.

In particular, according to Apple itself, competition has been intense as competitors have aggressively lowered prices and reduced margins on products.

The Fair Trade Commission said on February 3 that it approved the financial package suggested by the local unit of Apple Inc. to conclude its alleged unfair market practices in the past.

Mobile phone

«This is the first time that a remediation scheme (to compensate for unfair market practices) actually provides direct benefits to consumers, such as discounts on warranty and repair costs,» said FTC President Joh Sung-wook. , at a press conference held in the Seoul government, according to The Korea Herald.

«(The FTC) will need to closely monitor whether Apple carries out its promised actions to contribute to the national ICT ecosystem,» she added.

Apple Korea has been under investigation for years by the antitrust watchdog on allegations that it pressured the country’s three mobile phone operators, SK Telecom, KT and LG Uplus, to bear the cost of TV ads and TV services. iPhone warranty.