"Apple, Guarantee the Right to Repair" US FTC Supports Biden

Apple, which has maintained an exclusive AS policy,
faces US FTC's "illegal act" policy statement
Repair market expected to activate... MS and Sony also targeted

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Cha Min-young] The Federal Trade Commission (FTC), often referred to as the U.S. version of the Fair Trade Commission, has joined the battle between the White House and Apple over the 'right-to-repair.' The FTC announced plans to classify the repair restrictions imposed by smartphone manufacturers, including Apple, as 'illegal' and to take enforcement actions.

According to IT specialist outlets The Verge and AppleInsider on the 21st (local time), the FTC unanimously approved and submitted a policy statement reflecting this stance. This was in response to a comprehensive executive order issued by U.S. President Joe Biden directing the FTC to promote the U.S. economy.

Until now, Apple has maintained a service policy that allows replacement parts orders and defect diagnostics only through its authorized repair facilities. However, President Biden recently ordered smartphone manufacturers to correct monopolistic practices controlling repair rights, putting the long-standing practices of big tech companies under scrutiny.

If Apple's repair restriction practices are overturned, it is expected to have positive effects such as revitalizing the repair market, enhancing consumer choice, and reducing electronic waste. With freer competition, repair costs are also expected to decrease. CNN pointed out that "smartphone manufacturers have monopolized repair rights as a money-making tool to encourage consumers to buy new products rather than fix existing devices."

This is also a significant antitrust enforcement action taken after the inauguration of Lina Khan, FTC Chairwoman, who stands in opposition to big tech companies. Lina Khan is known as one of the hardliners called the 'Amazon Killer.' Since taking office, President Biden has been tightening regulations on big tech companies.

There are also expectations that the FTC's actions will not be limited to Apple. AppleInsider reported, "Microsoft faces similar issues with its Surface product line and Xbox game console family," adding that "game hardware companies like Nintendo and Sony face similar challenges."