Assemblyman Kim Young-sik: "Apple's consent decree 100 billion won is insufficient... must increase"

"From 2009, advertising costs shifted to telecom companies amount to 180 billion to 270 billion KRW"
"An increase of over 80 billion KRW from 100 billion KRW is necessary; do not grant a free pass at a low price"

Customers visiting the Apple Garosugil store in Gangnam-gu, Seoul, on the 25th, the domestic release date of the iPhone 11, are experiencing the iPhone 11. Photo by Jinhyung Kang aymsdream@

[Asia Economy Reporter Han Jinju] As Apple Korea has initiated a consent decree for unfair practices such as shifting advertising costs to mobile carriers, there are calls to significantly increase the amount set.

On the 22nd, Kim Young-sik, a member of the National Assembly's Science, Technology, Information and Broadcasting and Communications Committee (People Power Party), stated that the 100 billion KRW amount set in the Fair Trade Commission's consent decree for Apple Korea is excessively low and needs to be increased by at least 80 billion KRW.

Rep. Kim pointed out, "Among Apple Korea's violations, the most serious issue is the 'setting of transaction conditions for device advertising costs and receiving payments for them.' The advertising industry estimates that Apple Korea shifted advertising costs to carriers from 2009 at a level of 180 billion to 270 billion KRW, but the consent decree amount is set at only 100 billion KRW, which is far too low."

The consent decree system refers to a system where, if a business operator agrees on corrective measures during an investigation or review by the Fair Trade Commission, the case is closed without a final judgment on illegality. Previously, the Fair Trade Commission announced that Apple Korea committed violations including ▲setting and receiving payments for device advertising cost transaction conditions ▲setting and receiving payments for warranty repair promotion cost transaction conditions ▲setting conditions to provide carrier-held patents as free licenses ▲setting transaction conditions allowing unilateral contract termination ▲setting minimum subsidies for Apple devices ▲interfering in carrier advertising activities.

Apple Violation Details (Provided by the Office of Assemblyman Kim Young-sik)

Rep. Kim said, "Since the consent decree system closes cases without judging the illegality of the incident, companies can eliminate disadvantages from penalties and are willing to accept the consent decree with an amount exceeding the profits gained from illegal acts. Considering that 100 billion KRW was set during Naver's consent decree in 2014, Apple Korea's consent decree amount should be significantly increased," he argued.

Rep. Kim emphasized, "Since the Fair Trade Commission has decided to collect opinions from stakeholders until October 3, the Ministry of Science and ICT and the Korea Communications Commission, which oversee broadcasting advertising and telecommunications, must promptly provide materials related to Apple's illegal acts to prevent giving a global company a cheap pardon."