Apple's troubles in Japan continue as antitrust watchdog may spring into action

By Williams Pelegrin September 26, 2016

Apple iPhone 7 — Julian Chokkattu/Digital Trends

Japan’s Fair Trade Commission seems to have had enough of alleged antitrust activities involving Apple and its carrier partners in the country, since the agency is considering taking action, reports Reuters.

In August, the FTC released a report that implicated the likes of NTT Docomo, KDDI Corp., and Softbank Group, alleging these top carriers within Japan are inhibiting the ability of smaller competitors to compete by refusing to sell them older surplus iPhones. More specifically, the three aforementioned carriers have deals in place that have them send older, surplus iPhones to other regions.

Furthermore, they reportedly buy iPhones in bulk and sell them at a discount, which gives Apple an advantage over competitors like Samsung. For example, the iPhone 7 and Galaxy S7 Edge can be purchased through NTT Docomo without a contract for 93,960 yen ($932), but the iPhone 7’s price drops to 38,232 yen ($379) if you opt for a two-year contract. By comparison, the Galaxy S7 Edge drops to 54,432 yen ($539).

As such, regulators are also interested in taking a look at Apple’s supply agreements with NTT Docomo, KDDI Corp., and Softbank Group, even though the U.S.-based company was not named in August’s report.

According to unnamed officials, the FTC wants to put enough pressure on these carriers to eliminate any antitrust violation, even if this involves renegotiating their contracts with Apple. “We are getting closer to taking action,” said an unnamed official. All three carriers have denied any wrongdoing on their part.

It’s worth noting that Apple is already under scrutiny in Japan over its tax practices. According to the Tokyo Regional Taxation Bureau, the company underreported its income in 2014 and 2015 by sending portions of its income to Ireland, where Apple did not pay taxes on the international transaction. As a result, Japan ordered the company to pay $118 million, and Apple has since complied.

Editors' Recommendations

Topics

Williams Pelegrin

Former Digital Trends Contributor

Williams is an avid New York Yankees fan, speaks Spanish, resides in Colorado, and has an affinity for Frosted Flakes. Send…

Mobile

Apple settles class-action lawsuit over iPhone 4S throttling

daily app deals ios 03 17 2016 iphone 4s owners sue apple

Apple has reached a settlement on a class-action lawsuit filed in December 2015 over claims its iOS 9 update throttled the performance of the iPhone 4S. According to MacRumors, the company is willing to pay $15 to each iPhone 4S owner for their poor performance claims.

The lawsuit was filed by Chaim Lerman and 100 other customers from New York and New Jersey who accused Apple of planned obsolescence of the iPhone 4S by knowingly slowing it down following the iOS 9 update. The plaintiffs claimed the company misrepresented the iOS 9 update as being compatible with the iPhone 4S (which came out in 2011) on its website, promising to bring faster performance to the device along with the newer models at the time. Instead, they said the update throttled all the apps, including the Phone app, and rendered their iPhone 4S devices completely useless.

Mobile

Apple may have killed off the iPhone XR, but it still stands the test of time

iPhone XR

As the iPhone 13 takes its place as the iPhone literally everyone should buy, the question still exists: Should I upgrade to the new iPhone, or should I keep my old one? To find out, I went back to a much older iPhone -- the 2018 iPhone XR -- for just over a week to see how well it would fare in 2021. Back when we reviewed it, we praised it as the "budget" iPhone to buy. This device was loaned to me by the folks at Back Market, so it's a refurb without all the dings and nicks that you'd have on an actively used phone.
A game changer with a legacy
The iPhone XR may be old now, but it's an important iPhone that preceded the current iPhones like the iPhone 11, iPhone 12, and the most recent iPhone 13. It's a phone that would be considered less than the "real" iPhone, but an iPhone nonetheless. Apple tried this sort of non-standard iPhone model with the SE and the iPhone 5C before. In many ways, the iPhone XR kicked off the standardization of Apple's lineup, and it also became one of the bestselling iPhones in its day. After using it, it's not a surprise.

Hardware that lasts and software that works
The iPhone XR's rounded corners, wide notch, and single camera combine late 2010s iPhone aesthetics with some of the older iPhone 6-style designs. It's a bit weightier than it should be, but the rounded corners mean that it doesn't dig into your fingers.

Mobile

Apple iPhone 14 rumors continue, revealing bigger screen, 48MP camera

Renders purportedly showing off the pink iPhone 14 and its notchless front.

The iPhone 13 has barely dropped, and before the dust can even settle, rumors of the iPhone's 14 design and display are already turning heads. We've covered earlier leaks from Jon Prosser, which we urged caution about, but now there are some more rumors from Apple analyst Ming-Chi Kuo.

The early rumors suggest the iPhone 14 could see a size increase to 6.1 inches, while the iPhone 14 Pro, Max, and Pro Max could potentially reach a generous 6.7 inches. What's more, it's entirely possible Apple may do away with the notched screen of previous models. With no notch, the screen may instead sport a hole-punch camera in the center-top of the screen, offering the least amount of wasted space on the phone's display. Face ID would have to be moved to below the screen's glass or Apple would have to bring back Touch ID with an under-display fingerprint sensor, though the company has been reluctant to do that to date, perhaps due to technical issues.