Prosecutors Investigate Apple Korea for 'Obstructing Fair Trade Commission On-Site Inspection'
[Asia Economy Reporter Kim Hyung-min] The prosecution has launched an investigation into Apple Korea, which was reported for obstructing the Fair Trade Commission (FTC) officials' on-site investigation.
According to the legal community on the 26th, the Seoul Central District Prosecutors' Office assigned the case, in which the FTC accused Apple Korea of obstructing an investigation under the Monopoly Regulation and Fair Trade Act (Fair Trade Act), to the Fair Trade Investigation Division (Chief Prosecutor Kim Min-hyung).
In June 2016, the FTC conducted an on-site investigation at Apple Korea's office in Samseong-dong, Seoul, to verify whether Apple Korea had interfered with the management of the three domestic mobile carriers.
However, from the day the investigation began, Apple Korea blocked the intranet and internet within the office and did not restore them until the last day of the first on-site investigation. As a result, the FTC stated that it was unable to secure materials such as the contract status between Apple Korea and the mobile carriers.
Subsequently, the FTC requested Apple Korea to submit documents explaining the reason for the network disconnection and whether there were work programs using the cloud, but Apple Korea did not comply.
During the second on-site investigation in November 2017, Apple Korea executive Mr. A, along with security personnel and employees from the external cooperation team, blocked the FTC investigators from entering the site for about 30 minutes by grabbing their arms and obstructing them.
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Accordingly, the FTC imposed fines totaling 300 million KRW on Apple Korea: 200 million KRW for the network blocking act and 100 million KRW for failure to submit documents. Additionally, Apple and executive Mr. A were reported to the prosecution for obstructing the investigation during the second on-site investigation.
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