Apple changes contracts with local operators

Apple Korea has agreed to change its contracts with local service providers and repair agencies which allowed the global smartphone manufacturer to cancel the service or change contracts without notifying the companies.

This clause was one of 20 the Korean antitrust agency Fair Trade Commission on Thursday said it has asked Apple to change in its contracts with authorized service providers, including the country’s top two mobile carriers SK Telecom and KT.

Korea is the first country where Apple has agreed to make such changes in its contracts with local service providers.

Other changes include Apple refusing to accept repairs or denying cancellation on repair orders. Apple is now only allowed to deny orders when it has rational reasons such as the shutdown of the product’s manufacturing line or a shortage of parts.

“Until now, because of the one-sided contract that allowed Apple to cancel or make changes without prior notification, there have been a lot of financial burden that the repair agencies were under,” said a FTC official.

Apple also agreed to pay in full the owed amount when it cancels a contract with a service provider.

In November last year six Apple repair agencies, including Dongbu Daewoo Electronics Service, Ubase and BeyondTech, agreed to change their service policies after many local customers complained they received overcharged bills on repairs they didn’t approve.

In some cases, customers apparently agreed to repairs without knowing the problem or cost.

BY LEE HO-JEONG [lee.hojeong@joongang.co.kr]