APPC Homepage

Apple Korea applied for the initiation of the consent resolution preparation procedure on June 4 last year during the KFTC’s investigation into abuse of its market position* and the KFTC decided to initiate the procedure on June 4, 2020.

*The KFTC was investigating allegations that Apple Korea forced local mobile carriers to bear advertising and repair costs.

The provisional consent resolution has been prepared through several written and in-person consultations between the KFTC and Apple Korea for 60 days.

For resolving unfair trade practices, Apple Korea agreed to ensure more transparent and fairer procedures related to advertising fund negotiations and execution. The provisional consent resolution also includes deletion of certain provisions related to warranty repair costs and arbitrary contract termination, adoption of a mechanism to replace the current patent license clauses and guarantee the rights of mobile carriers and applicants while preventing patent disputes, adjustment of the minimum subsidies in accordance with discounts provided by mobile carriers, and mutual discussions to follow non-fulfillment.

Apart from taking the behavioral corrective measures, Apple Korea pledged to offer 100 billion won worth of supportive initiatives for consumers and small and medium-sized businesses.

Out of the 100 billion won, the company has decided to furnish 40 billion won to build a R&D center for Korea's small manufacturers and conduct various educational programs. Another 25 billion won will be used to establish an academy for developers to provide a nine-month training program for 200 students each year, thereby enhancing cooperation with local universities and start-ups. The company will also invest a further 10 billion won in providing digital education to innovation schools, underprivileged students and public facilities (such as local libraries and science museums) in collaboration with social enterprises. Finally, another 25 billion will be spent to give discounts on warranty repair costs for iPhone users as well as a refund or discount for those who will or have already purchased AppleCare.

The KFTC plans to collect opinions on the provisional consent resolution from relevant parties for 40 days, from Aug. 25 to Oct. 3. The provisional consent resolution will be published in KFTC's website (www.ftc.go.kr) and any relevant parties can submit written opinions to the KFTC. Upon completion of the public comment process, the KFTC will finalize the consent decree reflecting on the collected opinions after undergoing a deliberation and resolution.