Apple Korea, under antitrust probe, proposes $84 mln to support small businesses

SK Telecom Co

24/08/2020 04:02

SEOUL, Aug 24 (Reuters) - Apple Inc.'s  AAPL.O  South Korean
unit has proposed measures to address antitrust concerns and
offered to provide 100 billion won ($84.02 million) worth of
support programmes for small businesses, consumers and others,
the country's competition watchdog said on Monday.
    Apple Korea has been under investigation by the Korea Fair
Trade Commission over allegations it abused its dominant
position by forcing mobile carriers to pay for advertising and
warranty repairs, the commission has said. 
    Apple has agreed to fix "unfair" terms with mobile carriers
as part of its proposal, the KFTC said in a briefing. For
example, Apple will discuss how to share advertising costs with
telecoms firms, which will help reduce burdens to carriers, the
KFTC said.         
    Apple Korea was not immediately available for comment. 
    Out of the 100 billion won, Apple pledged to offer 40
billion won to build a centre to support research and
development for Korea's small manufacturers and 25 billion won
to establish an "academy" to provide education to developers.
Another 25 billion won will be used to give consumer discounts
on warranty repair costs and other benefits.     
    The regulator will close the case without concluding whether
Apple did anything illegal if it finds the proposed remedies
reasonable after collecting public opinion.       
    In 2019, Apple held an 18% share in South Korea's mobile
phone market, the home turf of Samsung Electronics  005930.KS ,
which controlled 65% of the market, according to data from
researcher Counterpoint. 
    Apple faces antitrust pressure in other countries. In March,
French regulators fined Apple 1.1 billion euros ($1.23 billion),
saying the iPhone maker was guilty of anti-competitive behaviour
toward its distribution and retail network. Apple said at that
time that it would appeal to the decision. 
    (s$1 = 1,190.1300 won)

 (Reporting by Hyunjoo Jin. Editing by Gerry Doyle)
 ((hyunjoo.jin@thomsonreuters.com; 82-2-3704-5685; Reuters
Messaging: hyunjoo.jin.thomsonreuters.com@reuters.net))