Apple Allegedly Forced Japanese Carriers to Sell iPhones with Major Discounts
Apple is under fire in Japan where the local antitrust watchdog accuses the company of forcing domestic carriers to sell iPhones with major discounts and higher monthly fees.
This approach helped the Cupertino-based tech giant sell iPhones at prices lower than devices belonging to the competition, according to a report from Reuters citing the Fair Trade Commission (FTC).
“Obliging carriers to offer subsidies (for iPhones) could have prevented the carriers from offering lower monthly charges and restricted competition,” the FTC was quoted as saying.
Apple forced the same strategy on NTT Docomo, KDDI Corp, and SoftBank Group Corp., according to the report, and customers were locked into contracts that in some cases ran for four years.