Korea FTC Investigating Apple Over Unfair Mobile Carrier Contracts - MacRumorsOpen MenuShow RoundupsShow Forums menuVisit ForumsOpen Sidebar
Skip to Content

Korea FTC Investigating Apple Over Unfair Mobile Carrier Contracts

by

South Korea's Fair Trade Commission (FTC) is investigating "some matters" relating to Apple's business practices in the country, according to a Reuters report this morning.

The comment was made Tuesday by the FTC chairman Jeong Jae-chan during a parliamentary hearing, but he declined to elaborate when asked to do so by a South Korean lawmaker.

Emblem_of_the_Korea_Fair_Trade_Commission_(South_Korea)_(English)
Last week, the Korea Times cited sources tying an upcoming FTC investigation to the terms of Apple's marketing contracts with local mobile carriers. Sources said Apple was suspected of pressing carriers into buying a minimum volume of promotional iPhones and sharing the burden of repair costs.

"The Fair Trade Commission (FTC) is investigating mobile carriers over the exact terms of their contracts with Apple, and Apple Korea will also be looked into soon," said the source.

Apple has faced criticism over its business practices in the country before. In April, the FTC ordered the company to change unfair provisions in its contracts with certified repair service partners which stipulated that the firms could not file lawsuits against Apple within a year after any dispute.

The repair service partners were seen to have little choice but to agree with the terms, due to the market power of Apple's iPhones. Apple complied with the FTC order and changed the contracts.

In 2015, the FTC also ordered Apple to allow customers refunds for repair services.

Sources speculate that the latest investigation may result in the FTC fining the company and urging it to revise its contracts with mobile carriers if similar unfair terms are discovered.

South Korea has three major mobile carriers competing for subscribers, but offer few subsidies for contracts that include iPhone handsets. Contracts for Android-based handsets on the other hand offer a range of subsidies to customers.

"As Apple does not allow mobile carriers to offer subsidies for iPhones, they may have been forced to pay for Apple Korea's marketing activities," said another source speaking to Korea Times.

Top Rated Comments

Kroo Avatar
129 months ago
Now I wonder if Samsung has had a hand in this, with their track record for corrupt and criminal business practices and their ties to government it would surprise. Me. Now if we were to list the corrupt practices of Samsung,, we'll lets just say there isn't enough internet to cover it fully.
Score: 3 Votes (Like | Disagree)
Pakaku Avatar
129 months ago
Apple's rotten core. Why on earth would Apple, with its huge margins, its sales model, play at this game of trying to extract even more coin through completely unreasonable terms and contracts. Shareholders need to back off and allow the Apple tree to flourish instead of rot.
They always seem like a company that likes to try to get away with as much as they can until it feels too risky.
Score: 3 Votes (Like | Disagree)

Popular Stories

Apple Logo 16x9 US Flag Feature

Apple Subpoenas Samsung in South Korea Over DOJ Antitrust Case

Thursday April 9, 2026 4:20 am PDT by
Apple has asked a U.S. court to formally request internal Samsung documents from South Korea as part of discovery in the DOJ's ongoing antitrust lawsuit against the company. The DOJ filed suit against Apple in March 2024, alongside a number of governments, alleging the company used App Store rules, developer restrictions, and control over key iPhone features to stifle competition. After Apple...
iPhone 17 Pro Stickers Ad

Apple Covers iPhone 17 Pro in Stickers in New Ad

Thursday April 16, 2026 8:25 am PDT by
In a video uploaded to its YouTube channel in South Korea today, Apple showed off a handful of iPhone 17 Pro devices decorated with tiny stickers. The stickers are placed on the iPhone 17 Pro's so-called "plateau," the protruding aluminum area housing the rear cameras, an LED flash, a microphone, and the LiDAR Scanner. The video has the hashtags #PhoneDecor and #iPhoneCustomization....
iOS 27 on iPhone 17 1

iOS 27 Will Add These New Features to Your iPhone

Saturday May 2, 2026 8:43 am PDT by
Apple is expected to unveil iOS 27 during its WWDC 2026 keynote on June 8, and there are already many rumored features and changes for iPhones. The first developer beta of iOS 27 will likely be available immediately following the keynote, and a public beta typically follows in July. Following beta testing, the software update should be released to all users with a compatible iPhone in...
Related Apple News: Entertainment | News | Iphone | Mac | Lifestyle