Joseonguk "Apple Consent Decision, First Inclusion of 'Direct Consumer Benefits'... 10% Discount on Repair Costs"

Final Confirmation of Apple Korea's Consent Decree

"Not Favoring Companies... These Requirements Are Very Strict"

Apple Case Took 19 Months Until Final Confirmation... "We Will Seek Ways to Expedite Consent Decree Process"
Consent Decree System Also to Be Introduced in Onple Act and Jeonsang Act

Chairman Jo Sung-wook of the Fair Trade Commission is giving a briefing on the "Final Confirmation Plan for Apple Korea's Consent Decision" on the 3rd.

[Sejong=Asia Economy Reporter Joo Sang-don] Cho Sung-wook, Chairman of the Korea Fair Trade Commission (KFTC), emphasized on the 3rd, "Unlike before, the Apple Korea consent decree includes, for the first time, a plan to provide direct benefits to consumers, such as a 10% discount on paid repairs."

On this day, Chairman Cho made the remarks during a briefing on the "Final Confirmation of Apple Korea Consent Decree."

Since 2016, the KFTC began investigating Apple for abusing its dominant position in transactions. During this process, Apple applied for a consent decree in June 2019, and the KFTC finalized the consent decree on the 27th of last month.

Chairman Cho explained, "This consent decree includes corrective measures for actively improving transaction order and win-win plans to support consumers and small and medium-sized enterprises (SMEs). It is meaningful in that it provides an opportunity to improve the transaction relationship between both parties more fairly through the business operator's voluntary correction, and that tangible benefits will be delivered to SMEs and consumers."

This consent decree includes direct benefits for consumers for the first time. Chairman Cho said, "When consumers repair iPhones, they can receive the same 10% discount not only at Apple's authorized service centers but also at AS centers operated by mobile carriers. The KFTC will closely monitor Apple's compliance status for the next three years."

Regarding criticism that this consent decree is "favoring Apple," Chairman Cho drew a clear line. There have been continuous criticisms that the consent decree system does not investigate illegality if the business operator proposes a reasonable corrective plan, thus "favoring companies." In response, Chairman Cho said, "We are well aware of concerns that using the consent decree system might be favoring companies. However, the consent decree system operates under very strict requirements and procedures, such as providing stakeholders the opportunity to submit opinions, collecting opinions from related administrative agencies, and consulting with the Prosecutor General, so it is structured in a way that cannot be unilaterally advantageous to the respondent."

The KFTC plans to prepare improvement measures for the consent decree system. This is in response to criticism that the 19 months taken until the final confirmation of this consent decree did not meet the original purpose of "promptly restoring competitive order and remedying damages." Chairman Cho stated, "Taking this case as an opportunity, we plan to thoroughly review the entire system and prepare improvement measures so that the consent decree system can be operated promptly and efficiently in line with its original intent. We will seek ways to ensure swift procedures, such as advancing the application deadline for consent decrees or limiting the negotiation period after the decision to initiate the consent decree."

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