Fair Trade Commission Delays Apple Consent Decision Again Due to "Lack of Specificity in Corrective Measures"

[Sejong=Asia Economy Reporter Joo Sang-don] The Korea Fair Trade Commission (KFTC) has once again postponed its decision on whether to initiate a consent decree procedure for Apple Korea.

On the 13th, the KFTC announced on the 14th that at the plenary meeting, it decided to postpone the decision on whether to initiate the "application for the consent decree procedure related to Apple’s abuse of superior bargaining position" until a later date.

A KFTC official explained, "After the first review, the applicant’s revised and supplemented corrective measures showed some improvements, but the specificity of detailed execution plans for mutual growth support measures was insufficient. We decided to resume negotiations and decide on the initiation of the consent decree procedure once the applicant submits materials regarding concrete plans for the corrective measures."

Apple Korea has been accused of shifting advertising costs and free repair expenses onto mobile carriers such as SK Telecom, KT, and LG Uplus. In response, the KFTC submitted an investigation report containing allegations of legal violations in December 2018 and began a plenary review. However, the related procedure has been suspended since Apple applied for a consent decree in July last year.

The consent decree is a system where a business operator voluntarily proposes reasonable corrective measures such as restoration to the original state and compensation for damages to consumers or trading partners, and if the KFTC recognizes the validity of these measures after collecting opinions from stakeholders, it promptly closes the case without determining illegality.

This is the second time the KFTC has postponed its decision on whether to initiate the consent decree procedure. On September 25 last year, the plenary meeting reviewed the application for the consent decree procedure but failed to reach a conclusion.

If the consent decree procedure is initiated, the consent decree plan will be finalized after additional consultations with stakeholders such as the three telecom companies, the Prosecutor General, and related administrative agencies. Conversely, if the application is dismissed, disciplinary procedures by the KFTC will resume.

This content was produced with the assistance of AI translation services.