April 26, 2024
Mobile & Internet
Mobile carriers get court relief on illegal subsidies
[THE INVESTOR] A local court acquitted South Korea’s three mobile carriers on Nov. 22, which were indicted on charges of violating a law that bans excessive discounts or subsidies to customers, due to a lack of evidence
The Seoul Central District Court found the carriers -- SK Telecom, KT and LG Uplus -- not guilty of violating the Mobile Device Distribution Improvement Act, saying the prosecution failed to provide enough evidence.
They were indicted in April over allegations of paying subsidies far over the limit to retail stores to woo more customers when the new iPhone 6 was launched in late 2014.
It marked the first time the carriers stood trial since the new law, which restricts the amount of incentives, was enacted in October 2014. Under the law, carriers are banned from offering discounts and subsidies in excess of 300,000 won (US$255).
Prosecutors suspected that SK Telecom, KT and LG Uplus paid up to 460,000 won, 560,000 won and 413,000 won per device, respectively.
Three incumbent and former board members of the firms who were indicted together were also cleared of charges.
(theinvestor@heraldcorp.com)
The Seoul Central District Court found the carriers -- SK Telecom, KT and LG Uplus -- not guilty of violating the Mobile Device Distribution Improvement Act, saying the prosecution failed to provide enough evidence.
They were indicted in April over allegations of paying subsidies far over the limit to retail stores to woo more customers when the new iPhone 6 was launched in late 2014.
It marked the first time the carriers stood trial since the new law, which restricts the amount of incentives, was enacted in October 2014. Under the law, carriers are banned from offering discounts and subsidies in excess of 300,000 won (US$255).
Prosecutors suspected that SK Telecom, KT and LG Uplus paid up to 460,000 won, 560,000 won and 413,000 won per device, respectively.
Three incumbent and former board members of the firms who were indicted together were also cleared of charges.
(theinvestor@heraldcorp.com)
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