Apple illegally fixed prices of iPhones in Russia

Apple logoA seven-month investigation by Russia's Federal Antimonopoly Service has found that Apple's Russian arm illegally fixed prices for certain iPhone models, according to a report from the Financial Times. The FAS found that Apple told 16 retailers to "hold the prices" of these iPhones and that Apple would contact the retailers in the event that the company found their prices "inappropriate." Apple may have terminated agreements with retailers unwilling to meet those pricing guidelines.

The full report is posted in Russian here; affected phones include the iPhone 5S and 5C, the 6 and 6 Plus, and the 6S and 6S Plus. The prices were fixed for a period of roughly three months.

A penalty has not been set, though the report indicates that it could be as much as 15 percent of Apple's sales in Russia. The company will have three months to challenge the decision once the full ruling is published later in the month. The investigation and the ruling only apply to Apple's Russian subsidiary, and the FAS dropped a similar investigation against Apple Inc. and other international subsidiaries "due to lack of evidence."

We've asked Apple for comment and will update this story if the company replies. An Apple spokesperson speaking to the Times said that Apple has "worked closely with FAS during their investigation" and is "glad to put this matter behind us." FAS Deputy Head Andrey Tsarikovsky also said that Apple has made changes to comply with Russian laws and has implemented policies to prevent future violations.

Apple positions itself as a luxury brand, and one of the ways it has maintained that brand has been to avoid budget gadgets in favor of premium products and premium price tags. Retailers who sell iPhones for significantly less than Apple's own MSRP could undercut those efforts, which could explain why Apple tried to dictate prices to these retailers in the first place.

Source: Ars Technica

Tags: Apple, iPhone, Russia, smartphones

Comments
Add comment

Your name:
Sign in with:
or
Your comment:


Enter code:

E-mail (not required)
E-mail will not be disclosed to the third party


Last news

 
Devices that are still in use with Android 2.1 and earlier iterations of the OS have been stuck with the Android Market for all this time
 
Google has no plans to replace job seeking websites, and instead will be working with the likes of LinkedIn
 
It is powered by a Snapdragon Wear 2100 processor
 
Vertical dual cameras, wireless charging, glass body
 
Qualcomm Snapdragon 835, 8GB RAM, and a price rise
 
Microsoft "temporarily" disabled some parts of AV software it considered incompatible with Windows 10 Creators Update
 
Multiply a Ryzen by four and all of a sudden Intel has some real competition
 
Samsung is said to hold a launch event in New York City for its next Galaxy Note smartphone in August
The Samsung Galaxy A5 (2017) Review
The evolution of the successful smartphone, now with a waterproof body and USB Type-C
February 7, 2017 /
Samsung Galaxy TabPro S - a tablet with the Windows-keyboard
The first Windows-tablet with the 12-inch display Super AMOLED
June 7, 2016 /
Keyboards for iOS
Ten iOS keyboards review
July 18, 2015 /
Samsung E1200 Mobile Phone Review
A cheap phone with a good screen
March 8, 2015 / 4
Creative Sound Blaster Z sound card review
Good sound for those who are not satisfied with the onboard solution
September 25, 2014 / 2
Samsung Galaxy Gear: Smartwatch at High Price
The first smartwatch from Samsung - almost a smartphone with a small body
December 19, 2013 /
 
 

News Archive

 
 
SuMoTuWeThFrSa
    123
45678910
11121314151617
18192021222324
252627282930 




Poll

Do you use microSD card with your phone?
or leave your own version in comments (3)