Apple faces $647K fine in Taiwan for forcing carriers to seek iPhone price approval
According to Taiwan's FTC, Apple is breaking the local law by forcing Taiwanese carriers to get its approval for the prices at which carriers sell iPhones. Although this is not an uncommon practice for Apple - the company also does this in the United States - it does seem to be violating Taiwanese laws. Under the country's laws, carriers own the smartphones that they sell to their subscribers, meaning that they are free to price iPhones according to their own desires.
According to the Taiwanese Fair Trade Comission, Apple imposed contract prices for the iPhone 4, the iPhone 4S, the iPhone 5, and the iPhone 5S, while also determining iPhone subsidies, and the price difference between the newer and older iPhone models. In short, Apple was dictating the way Taiwanese carriers should sell iPhones, although this practice seems to have been put on hold for the iPhone 6 series, as the two new smartphones were launched after the original Taiwanese FTC investigation.
According to the International Data Corporation, in the December quarter, Apple's iPhone lineup held a 32 percent market share of the Taiwanese smartphone market. Some of Apple's largest supply chain partners are based in Taiwan, including here companies such as Foxconn, Hon Hai Precision Industry, and TSMC.