Korean FTC approves Apple’s $ 89.7 Million Correction Scheme for unfair market practices

Apple Korea’s 100 billion-dollar ($ 89.7 million) correction scheme to support consumers and small businesses was approved by the country’s trusted watchdog group, following a year-long study of unfair market practices company (via The Korea Herald).

Apple has been under investigation in Korea since 2016 over unfair iPhone contracts that forced local carriers to pay advertising and repair costs, with the Korean Federal Trade Commission carrying out attacks in June 2016 and November 2017 .

The Korean FTC first looked at imposing penalties on Apple Korea and held several plenary sessions to discuss the issue. Instead, Apple proposed a voluntary redress scheme to end the issue, and the FTC approved the review proposal last year. Today’s report confirms that the watchdog has now adopted the plan under the Monopoly Regulation and Fair Trade Act.

Under the Monopoly Regulation and Fair Trade Act, accused companies are allowed to take action against a corrective scheme. If the FTC considers that the proposed corrective measures are reasonable, it wishes to close the case without judging the illegality of the case.

The associated clause was introduced in 2011 to speed up pending cases and to provide consumers with meaningful remedies, rather than resorting to legal means.

Apple plans to spend 40 billion on building an R&D center for local small businesses involved in smartphone manufacturing, with 25 billion going in offering 10% off discounts to consumers. use in agusiPhone‌ repair and warranty.

A further 25 billion will be used to set up an education center to train ICT developers, and the remaining 10 billion will go towards supporting digital education in schools and public facilities.

“We are delighted that this process has concluded and look forward to expanding and accelerating our commitments here with these new investments that will benefit suppliers and local manufacturers, small businesses, entrepreneurs, and education, “Apple said in a statement.

“The wide range of initiatives will strengthen innovation and economic opportunity across Korea. We look forward to sharing more details about these plans in the coming months.”

The FTC will appoint an accounting firm to review Apple’s implementation of the plan every half year over the next three years. If Apple Korea does not live up to their promise, the company could face an enforcement penalty of 2 million per day and invalidate the correction scheme invalid.