The South Korean unit of IPhone maker Apple Inc. (AAPL) is setting aside 100 billion won ($84.02 million) to support initiatives for small business entities, consumers and other involved parties.
This revelation was made by Korea Fair Trade Commission (KFTC) following allegations that Apple was using its dominance to its advantage by forcing mobile carries to pay for advertising and warranty repairs.
“Apple has agreed to fix unfair terms with mobile carriers as part of its proposal, the KFTC said in a briefing. For example, Apple will discuss how to share advertising costs with telecoms firms, which will help reduce burdens to carriers,” said KFTC.
$40 billion won will be used to build a research and development center for small manufacturers in South Korea said Apple. 25 billion won will be used to give customers discounts on warranty, repair costs and other benefits.
According to data compiled by a research company Counterpoint, in 2019 Apple held an 18% share in South Korea’s smartphone market. It came second after South Korea’s based fellow tech giant Samsung Electronics (005930) which had a 65% market share.
KFTC says after collecting immense public opinion it has resulted to closing Apple’s case without concluding whether or not the company was involved in any illegal competition.