Italy threatens to suspend Apple operations in warranty dispute
Italy's marketing authority has threatened to temporarily close Apple's Italian operations for up to 30 days over laws related to product warranties.
Italy's AGCM competition and marketing authority has warned Apple that it could face more fines and have is Italian operations suspended if it does not offer customers a free two-year warranty, according to Reuters. The group has given Apple 30 days to respond.
The organization has said that Apple has failed to meet its requirements and offer customers a warranty period of two years. Apple's standard product warranty is free for one year, and customers can pay for additional AppleCare coverage if they so choose.
If the AGCM finds that Apple has not begun to comply with Italian law, the iPhone maker could see its operations in Italy suspended for up to 30 days, according to the report.
Late last year, the watchdog group fined Apple 900,000 euros, or $1.2 million, for "unfair commercial practices" related to product warranties. Apple appealed the decision, but ultimately lost that decision this March.
Apple's Italian AppleCare webpage. | Source: Apple
The AGCM found that Apple had pushed its paid two-year AppleCare warranty on customers despite acknowledging that EU laws require companies to offer the same protections without charge. Apple complied with the December order and began informing customers through its online storefront of the mandatory two-year warranty.
However, with its latest statement reported on Monday, the AGCM has said that Apple has failed to comply with the antitrust requests tied to the original $1.2 million fine.
Italy's AGCM competition and marketing authority has warned Apple that it could face more fines and have is Italian operations suspended if it does not offer customers a free two-year warranty, according to Reuters. The group has given Apple 30 days to respond.
The organization has said that Apple has failed to meet its requirements and offer customers a warranty period of two years. Apple's standard product warranty is free for one year, and customers can pay for additional AppleCare coverage if they so choose.
If the AGCM finds that Apple has not begun to comply with Italian law, the iPhone maker could see its operations in Italy suspended for up to 30 days, according to the report.
Late last year, the watchdog group fined Apple 900,000 euros, or $1.2 million, for "unfair commercial practices" related to product warranties. Apple appealed the decision, but ultimately lost that decision this March.
Apple's Italian AppleCare webpage. | Source: Apple
The AGCM found that Apple had pushed its paid two-year AppleCare warranty on customers despite acknowledging that EU laws require companies to offer the same protections without charge. Apple complied with the December order and began informing customers through its online storefront of the mandatory two-year warranty.
However, with its latest statement reported on Monday, the AGCM has said that Apple has failed to comply with the antitrust requests tied to the original $1.2 million fine.
Comments
That's just what the EU needs right now; fewer jobs.
Raise the European price and include the two year warranty, problem solved.
So exactly how did Apple not comply?
Says the guy linving in a country with a debt of 130% of GNP.
We're doing ok in the EU.Mind your own business
From the comments, seems like people don't know what's the issue here.
The issue is that Apple wants to price discriminate. For the same product, some are willing to pay more and some are only willing to pay less. Like storage, AppleCare is an effective way to discriminate and that's why Apple wants to keep having it. That's why all these suggestions of 'just charge a high price for the product' doesn't work for Apple, because then Apple will lose business on those people who're going to not buy the product because they don't want to pay for the warranty.
LMFAO oh let me catch my breath...... I needed that laugh.
So please enlighten the us as to why the eu is the laughing stock of the financial systems of first world countries.... I don't remember any American stats asking for bailouts.
So pompous......
Run along now, the IMF Called your number again, looks like more money is ready for you.
Edit--
and-any
Quote:
Originally Posted by Blitz1
We're doing ok in the EU.
No you're not. The EU is in deep shit. I'm hoping for a total collapse of the EURO soon, it's bound to happen sooner or later. They're living on borrowed time. The EURO is a failed experiment, and those European countries that haven't adopted the idiotic EURO are surely happy today.
Sure you are. ????
Quote:
Originally Posted by Blitz1
Says the guy linving in a country with a debt of 130% of GNP.
We're doing ok in the EU.Mind your own business
You're doing ok in the EU? are you kidding me? 130% in a very active banking sector, one which isn't broken... unlike the EU banking sector
Quote:
Originally Posted by Blitz1
Says the guy linving in a country with a debt of 130% of GNP.
We're doing ok in the EU.Mind your own business
…but he does make sense. Apple will put up the price, Italians (if they can afford it cos lets face it, they aint rolling in money right this second) will shop in the neighbouring state, less taxes for the government, less jobs for the people. Less meddling = more money.
Italy needs Apple FAR MORE than Apple needs Italy.
I practically never buy extended warranties because if I did I'd spend way more money on them than I'd ever lose in replacement costs when the occasional gadget went wrong. They're only offered because it's financially viable to offer the extended coverage, which means the products they cover must be - statistically at least - good enough not to need the cover. Therefore, if you own lots of gadgets, it's hardly worth having the cover.
With that said, I don't know what the specific beef this Italian agency has with Apple on the basis of the compliance requirements: it must be something other than the specific two year warranty term if Apple has already complied with that. Sounds like brinkmanship to me though on the part of the agency.
Quote:
Originally Posted by Tallest Skil
Sure you are. ????
Let's not be so smug here.... The US is also a house of cards. We've just kicked the can down the road a few more years. We are in dire straights
There's a fundamental difference that makes the US unable to collapse.
Quote:
Originally Posted by Tallest Skil
????
I see all these people posting these boxes without anything in them, because that's how it's showing up for me. I guess I'm being discriminated against, because I happen to be on Snow Leopard at the moment. Is that a Lion thing only?
What the world doesn't need is your ilk who seek to destroy it for short-term, meaningless 'profits'.
1 year warranty is a joke and disturbing. If Apple cant produce a product that it can stand behind for at least 2 years - then they have no business producing landfill fodder and leaving others to deal with the waste.
Good on Italy. I hope other countries do the same and end this insanity.
Quote:
Originally Posted by Market_Player
Put up the prices to cover the additional warranty, or keep the prices the same and put a cover charge on the lineup for the AppleCare specialist.
what additional warranty?
it's the law, has been for years
apple's staff aren't ignorant fuckwits are they? they know the law, they already priced for it, if they didn't then they should be sacked for incompetence
apple chooses to offer its products in the eu, and like every other vendor it has to meet its obligations
if apple is misleading customers, it deserves to be punished, just like any other company would be for doing the same thing
selling worthless extended warranties was a widespread practice for years, but at last regulators have been punishing violators, which is a good thing
Do you also not buy health and life insurance? Because statistically, those don't make sense either. the reason people buy them is because being the unlucky one is too expensive and/or catastrophic. If you are willing to take that risk that's great, but don't pretend it has no value.
All that said, I'm not sure what Italy's problem is. It sounds like Apple has complied with their requirements. IIRC, the consumer protection law at issue is the same throughout the EU, and no other EU country has taken issue with Apple about it.
Italy has much deeper financial problems to work on than this, as one of the PIIGS.