Dodgy Apple Retail Business Practises Under Investigation On 3 Continents
Apple business practises are being exposed right round the world, In South Korea antitrust regulator have decided to force Apple Korea to map out a new set of measures to address Apple’s anti-competitive business practices, in the US Apple is trying to extract 30% revenue from an email Company, European regulators are also investigating the Company.
In South Korea Apple is currently they are facing claims that they violated competition law by demanding that SK Telecom Co., KT Corp. and LG Uplus Corp. pay the cost of television advertisements and warranty service for its iPhones.
The commission has said Apple holds a clear advantage over local mobile carriers and that handing over the cost of advertisements is only another means to squeeze the profits of the carriers.
The Fair-Trade Commission said it will review what Apple is proposing and then decide whether to approve them.
In Australia Apple is well known for bullying retailers and carriers, who sell their products.
Despite having high margins of up to 57% in their products Apple still demands special margin treatment over other suppliers and they also demand that their retail partners take more risks in selling their products.
Under South Korean law, an applicant is required to state a correction scheme necessary to restore competition practices or to improve business practices, and to remedy or prevent damage to consumers and other business entities.
As part of corrective measures, Apple Korea has proposed holding consultations with South Korean mobile phone carriers to reduce their burden and share the cost related to advertisements the Korean Herald is claiming.
An Apple Korea executive said “We don’t believe we have done anything wrong but are happy to put this process behind us so we can focus on doing even more for our customers and communities,” Apple Korea said in a statement.
In the USA Apple has b been accused of nobbling an App Store participant in an effort to get 30% of their revenues. This is a similar situation to the fight they had with Netflix who basically told Apple to get stuffed.
Apple has rejected an appeal from the email app Hey to remain available on the iPhone maker’s App Store, saying the software violated its rules related to in-app purchases.
What started the spat is that Apple turned down an update to the software claiming that Hey violated App Store rules. The email app requires users to sign up for an account outside of the app and doesn’t allow in-app subscriptions, which would require that Apple receive a 30% share of revenue.
Apple’s rules grant exceptions to some reader apps such as magazines, newspapers, and music, allowing users to access previously purchased content and subscriptions on the app without an in-app sign-up feature. But Apple said They didn’t fall into that category, according to a letter sent to Hey’s developer, Basecamp, that was obtained by Bloomberg News.
“The Hey Email app is marketed as an email app on the App Store, but when users download your app, it does not work,” Apple said in the letter. “Users cannot use the app to access email or perform any useful function until after they go to the Basecamp website for Hey Email and purchase a license to use the Hey Email app.”
Basecamp Chief Technology Officer David Heinemeier Hansson, who developed the app, said on Twitter that “Apple doubles down on their rejection of HEY in the App Store, but adds some spice to it at the end: YOU UNGRATEFUL PEASANTS! No mention of how Basecamp differs, how Gmail differs, how Outlook differs, how Fastmail differs. Just more edicts from the monopoly king!”
In Europe Apple’s App Store has come under scrutiny from European regulators, who earlier this week opened an investigation into the company’s rules, saying developers may be harmed unfairly by the requirement to share app revenue. Microsoft President Brad Smith said it’s also time for U.S. regulators to examine “the rules that are being put in place, the prices and the tolls that are being extracted.”