Apple has lost a lawsuit in Taiwan in which the company was accused of engaging in anti-competitive practices.
As reported by Reuters, Taiwan’s Fair Trade Commission initially levied a fine against Apple due to the company limiting local carriers from setting contract prices, which commission spokesman Chiu Yung-ho states is against the law. Apple denied the allegations and counter-sued the FTC, but subsequently lost the lawsuit.
The Taiwanese courts set Apple’s fine at T$20 million ($647,124), but will allow the company to appeal the decision. From the Reuters report:
“Telecom companies in Taiwan own the rights to the phones they sell and can set prices however they see fit, the commission said. In addition to contract prices, Apple also insisted upon approving the telecoms’ iPhone subsidies, price differentials between old and new phone models and advertising content.”
The iPhone is usually bundled with contracts on Taiwan’s three major telecom companies, Chunghwa Telecom, Taiwan Mobile and Far EasTone Telecommunications. It’s not a large sum of money for Apple, but the lawsuit marks a serious blow for the company in Taiwan.