Tech giant Apple is being accused by a group of South Korean retailers of forcing them to cover various costs associated with marketing iPhones, including demo phones displayed in their stores.
The Korea Mobile Phone Distributors Association (KMDA) said Apple is the only company resorting to such tactics, as all other phone makers offer free demo phones, which they collect when their promotional campaign ends.
Apple uses this strategy because of the popularity of the iPhone, the link says, and retailers have no choice but to agree with them if they want to sell the device.
Additionally, the tech giant does not allow sellers to sell the iPhone in their stores unless they purchase demo devices, while at the same time requiring them to create specific shelves for said devices, based on the company's strict policies.
KMDA says it is even considering legal action against the tech giant, although no specifics have been announced yet. The association is also considering filing a complaint with the Federal Trade Commission (FTC) and is in talks with South Korean companies such as SK Telecom, KT and LG Uplus, which sell Apple devices. “Apple has increased the pressure on retailers by forcing them to buy display phones,” KMDA said.
This is not the first time Apple has been criticized for unfair practices in South Korea. In 2016, the International Trade Commission opened an investigation after Apple forced several carriers to cover repair costs for iPhones sold in the local market, and last year it required telecom companies to pay for a TV ad for the iPhone X and iPhone 8.
