Apple Still Abusing Telecom Operators... Kim Young-sik Proposes 'Manufacturer Advertising Cost Transfer Ban Act'

iPhone 15-Second Ad, Carrier Logo Displayed for 1 Second
Disadvantages When Carriers Refuse iPhone Ads
Assemblyman Kim Young-sik Proposes Partial Amendment to the Mobile Communication Sales Act

Apple Store Yeouido, the second branch inside IFC Mall Yeouido, Seoul [Image source=Yonhap News]

[Asia Economy Reporter Cha Min-young] A bill prohibiting mobile phone terminal manufacturers from abusing their bargaining position to unfairly force telecommunications companies to bear advertising costs and other expenses was proposed on the 1st.

Kim Young-sik, a member of the People Power Party, announced on the 4th that he had introduced a partial amendment to the "Act on the Improvement of Distribution Structure of Mobile Communication Terminals" (Terminal Distribution Act) with such content on the 1st.

As the smartphone market is reorganized around a few large manufacturers such as Samsung, Apple, and Xiaomi, the bargaining power of terminal manufacturers is increasing. In this process, acts of manufacturers abusing their power over telecommunications operators through control of phone supply have been continuously reported.

According to the lawmaker's office, Apple Korea promised to resolve this issue early last year and avoided sanctions from the Fair Trade Commission through a consent decree including a 100 billion won social contribution project, but it is known that problematic behavior continues. It is explained that the act of effectively forcing telecommunications operators to participate in advertising for its iPhone and passing on the costs has not improved. If telecom companies refuse to advertise the iPhone, they are disadvantaged compared to other telecom operators in terms of iPhone supply quantity and timing.

Kim Young-sik, member of the People Power Party

Assemblyman Kim Young-sik stated, "The unfair costs passed on by mobile phone manufacturers to telecommunications companies ultimately fall on the users of communication services, the public," and added, "Through the amendment, we aim to eradicate the abuse of power by large global mobile phone manufacturers and create a healthy telecommunications ecosystem."

This content was produced with the assistance of AI translation services.