Fair Trade Commission Postpones Apple Consent Decision Review to After May

[Asia Economy Reporter Jang Sehee] Due to the spread of the novel coronavirus infection (COVID-19), the Fair Trade Commission's consent decree review related to Apple's 'abuse of superior bargaining position' case against domestic telecommunications companies has been delayed until after May. This is because, under COVID-19 quarantine guidelines, Apple’s executives and legal representatives from its U.S. headquarters would have to enter self-quarantine immediately upon arrival in Korea.

According to the Fair Trade Commission on the 29th, the agenda for initiating the consent decree review on the Apple case was scheduled to be presented at the plenary meeting on the 11th. However, as the number of COVID-19 cases surged worldwide earlier this month, the commission completely suspended plenary and small panel hearings and rulings in the first and second weeks of March.

The consent decree is a system where, if the investigated business operator proposes a voluntary corrective plan that the Fair Trade Commission deems reasonable, the commission can promptly conclude the case without confirming whether a legal violation occurred (suspending the review).

Apple was under investigation and review by the Fair Trade Commission for allegedly using its superior bargaining position to impose advertising costs and free repair expenses on domestic telecommunications companies. In July last year, Apple applied for a consent decree, stating it would prepare a voluntary corrective plan.

However, in the September review last year, the Fair Trade Commission judged that Apple’s proposed corrective plan for business practices was insufficient and deferred the decision to initiate the consent decree. Since then, Apple has submitted revised plans several times to supplement the corrective measures. The plenary meeting to be held after May will decide whether to start the consent decree procedure based on Apple’s revised voluntary measures.

Meanwhile, it is known that Apple also sympathizes with the schedule delays caused by COVID-19. From the 27th, a mandatory two-week quarantine for arrivals from the U.S. has been implemented, making it practically difficult to attempt a visit to Korea under these circumstances.