Fair Trade Commission Gives Apple a Voluntary Correction Opportunity... What Is Consent Decree?

[Asia Economy Reporter Joo Sang-don] The Korea Fair Trade Commission (KFTC) has decided to initiate the consent decree procedure for Apple Korea. As a result, Apple has avoided a fine amounting to at least several billion won.

On the 18th, the KFTC announced that it had decided to commence the procedure regarding the consent decree application submitted by Apple on June 4th of 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, the case is promptly closed without determining whether a violation occurred. From the KFTC’s perspective, this allows for swift relief to victims, while businesses benefit by avoiding sanctions.

According to the KFTC, Apple proposed to the commission the following measures: ▲reducing the burden costs on mobile carriers and introducing a consultation procedure for cost-sharing ▲mitigating trading conditions and management interference that unilaterally disadvantage mobile carriers ▲establishing a certain amount of mutual growth support fund to be used for coexistence with small businesses, program developers, and consumers, and the KFTC accepted these proposals.

The affected parties, the mobile carriers, are opposing the decision, arguing that the government has granted Apple a pardon despite little change in Apple’s behavior. A representative from a mobile carrier stated, "Apple’s recent behavior has not significantly changed from before. Mobile carriers, whose interests are intertwined with product supply, find it difficult to actively voice their opinions to the KFTC," adding, "The corrective measures should specifically state how advertising costs will be shared and how free repairs will be handled."

Apple’s final corrective plan will be tentatively prepared within 30 days, followed by a 30 to 60-day period for collecting opinions from stakeholders, and then finalized through the KFTC’s review and resolution.

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