Taiwan's Fair Trade Commission (FTC) has fined Apple Asia NT$20 million (US$666,622) over its sales contracts demanding local telecom carriers sell its products at fixed prices. Sources from Taiwan's telecom carriers pointed out that their contracts with Apple are unlikely to see immediate changes, but may be re-negotiated in the future.

　　FTC noted that Apple has denied carriers the freedom to decide product prices based on their financial and market conditions, thus limiting the competition between brands.

　　FTC found that Taiwan's carriers Chunghwa Telecom (CHT), Taiwan Mobile and Far Eastone Telecommunications (FET) have always had Apple Asia evaluate their service bundling plans concerning Apple products and these plans must be approved by Apple before implementation.

　　In addition, Apple Asia has frequently demanded the carriers fix or adjust their smartphone prices in bundling plans, the amount of subsidies for smartphones and the price gap between new and older models. The contracts also stipulate the minimum amounts of products the carriers have to purchase, and related advertisements will also need to be approved by Apple.

　　To meet Apple's strict terms, Taiwan's telecom carriers have had to run separate plans for iPhones and some of the carriers' preferential plans also do not include iPhones.

　　The sources pointed out that the carriers have been willing to cooperate with Apple because of strong market demand for iPhones. But as iPhones' popularity is waning, the carriers have also started adjusting their promotions for the products.

　　With Apple now having fewer bargaining chips and with FTC's intervention, the sources believe Apple may have to adjust its policy in Taiwan.