Close
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
Read Down
Sign in
Close
Welcome!Log into your account
Forgot your password?
Read Down
Password recovery
Recover your password
Close
Search
Logo
Logo
  • Latest News
  • Artificial Intelligence
  • Video
  • Big Data and Analytics
  • Cloud
  • Networking
  • Cybersecurity
  • Applications
  • IT Management
  • Storage
  • Sponsored
  • Mobile
  • Small Business
  • Development
  • Database
  • Servers
  • Android
  • Apple
  • Innovation
  • Blogs
  • PC Hardware
  • Reviews
  • Search Engines
  • Virtualization
More
    Home Apple
    • Apple
    • Mobile

    Apple Fined in Taiwan for ‘Interfering’ with iPhone Pricing Policies

    Written by

    Pedro Hernandez
    Published December 26, 2013
    Share
    Facebook
    Twitter
    Linkedin

      Taiwan’s Fair Trade Commission has levied a $667,000 fine, which amounts to 20 million New Taiwan dollars, against Apple due to company’s iPhone pricing policies in that country.

      Apple is allowed to appeal the ruling but must “stop interfering with mobile service providers and handset distributors’ pricing,” Jenny W. Hsu of the Wall Street Journal wrote in her report. Failure to comply could result in a heftier fine of NT$50 million.

      Either fine is unlikely to have much of an effect on Apple’s bottom line. The iPhone and iPad maker reported revenues of $37.5 billion and net profit of $7.5 billion on Oct. 28 for its fiscal fourth quarter. Apple sold a record 33.8 million iPhones during the period.

      Despite stiff competition from Samsung and other Android handset makers, Apple is poised to set more records. The company announced on Dec. 22 that its iPhone 5S and 5C handsets will finally go on sale through China Mobile, the world’s largest cellular provider with 760 million subscribers, in Jan. 2014.

      Taiwan’s trade regulators accused Apple of setting how much three wireless operators, Chunghwa Telecom, Far Eastone Telecommunication and Taiwan Mobile, can charge for iPhones, in violation of the country’s Fair Trade Act, Article 18. The Cupertino, Calif.-based company also sought to influence their rate structures.

      Article 18 of the country’s Fair Trade Act falls under Chapter 3, entitled Unfair Competition. It 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 [resale] prices freely; any agreement contrary to this provision shall be void.”

      In a statement, the commission laid out its proof. “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.”

      The commission asserted that Apple “has no right to meddle in companies’ iPhone pricing plans after selling them distribution rights,” said the report. Further, the Taiwanese wireless service providers “can distribute or resell iPhones at their complete discretion after paying Apple for those rights.”

      Apple was found to have asserted more influence with resellers than is allowed by Taiwan’s laws. Among the commission’s findings, VentureBeat’s Eric Blattberg noted that “Apple required the companies to adjust those plans, the subsidies they offered with iPhone contracts, and the price difference between the iPhone 4S and the iPhone 5.”

      The commission discovered no such interference on the Android front. Handset makers HTC, Samsung and Sony, although investigated, did not strike “similar agreements with Taiwan’s telecom companies,” added Blattberg.

      Pedro Hernandez
      Pedro Hernandez
      Pedro Hernandez is a writer for eWEEK and the IT Business Edge Network, the network for technology professionals. Previously, he served as a managing editor for the Internet.com network of IT-related websites and as the Green IT curator for GigaOM Pro.

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      Get the Free Newsletter!

      Subscribe to Daily Tech Insider for top news, trends & analysis

      MOST POPULAR ARTICLES

      Artificial Intelligence

      9 Best AI 3D Generators You Need...

      Sam Rinko - June 25, 2024 0
      AI 3D Generators are powerful tools for many different industries. Discover the best AI 3D Generators, and learn which is best for your specific use case.
      Read more
      Cloud

      RingCentral Expands Its Collaboration Platform

      Zeus Kerravala - November 22, 2023 0
      RingCentral adds AI-enabled contact center and hybrid event products to its suite of collaboration services.
      Read more
      Artificial Intelligence

      8 Best AI Data Analytics Software &...

      Aminu Abdullahi - January 18, 2024 0
      Learn the top AI data analytics software to use. Compare AI data analytics solutions & features to make the best choice for your business.
      Read more
      Latest News

      Zeus Kerravala on Networking: Multicloud, 5G, and...

      James Maguire - December 16, 2022 0
      I spoke with Zeus Kerravala, industry analyst at ZK Research, about the rapid changes in enterprise networking, as tech advances and digital transformation prompt...
      Read more
      Video

      Datadog President Amit Agarwal on Trends in...

      James Maguire - November 11, 2022 0
      I spoke with Amit Agarwal, President of Datadog, about infrastructure observability, from current trends to key challenges to the future of this rapidly growing...
      Read more
      Logo

      eWeek has the latest technology news and analysis, buying guides, and product reviews for IT professionals and technology buyers. The site’s focus is on innovative solutions and covering in-depth technical content. eWeek stays on the cutting edge of technology news and IT trends through interviews and expert analysis. Gain insight from top innovators and thought leaders in the fields of IT, business, enterprise software, startups, and more.

      Facebook
      Linkedin
      RSS
      Twitter
      Youtube

      Advertisers

      Advertise with TechnologyAdvice on eWeek and our other IT-focused platforms.

      Advertise with Us

      Menu

      • About eWeek
      • Subscribe to our Newsletter
      • Latest News

      Our Brands

      • Privacy Policy
      • Terms
      • About
      • Contact
      • Advertise
      • Sitemap
      • California – Do Not Sell My Information

      Property of TechnologyAdvice.
      © 2024 TechnologyAdvice. All Rights Reserved

      Advertiser Disclosure: Some of the products that appear on this site are from companies from which TechnologyAdvice receives compensation. This compensation may impact how and where products appear on this site including, for example, the order in which they appear. TechnologyAdvice does not include all companies or all types of products available in the marketplace.

      ×