Apple could pay a penalty of up to $2.25 million for advertising the latest iPad as a 4G-capable device under a settlement with the Australian competition watchdog.
The consumer electronics giant reportedly asked presiding Justice Mordecai Bromberg last week in the Federal Court in Melbourne to accept its proposed settlement with the Australian Competition and Consumer Commission.
In addition to the penalties, Apple would also contribute $300,000 to the ACCC's legal costs.
An Apple spokeswoman confirmed the company would accept the settlement, pending acceptance next week by Justice Bromberg.
It would settle the first of a growing number of global cases against Apple for allegedly misleading consumers about the capabilities of the third-generation iPad.
The tablet works on specific LTE networks in the US and Canada, marketed as 4G, but not on those available in Australia, Europe and elsewhere.
Apple had agreed to change the branding on mobile broadband-capable versions of the tablet to say "Wi-Fi + Cellular", while allowing customers who felt slighted by the advertising to return the tablet for a full refund.
The company reportedly refused to disclose in public the number of customers who had returned the tablet since April.
However, the watchdog still sought penalties from Apple for the issue.
The Age reported that Apple legal counsel Alan Archibald QC, asked the presiding judge to decrease the fine imposed on it, but said there was "no question at all about [Apple's] financial capacity to meet the penalty".
Copyright © iTnews.com.au . All rights reserved.
Issue: 324 | February 2014
Access CRN's extensive online resources including; email bulletins, community discussions and unique online news.
Processing registration... Please wait.
This process can take up to a minute to complete.
A confirmation email has been sent to your email address - SUPPLIED GOES EMAIL HERE. Please click on the link in the email to verify your email address. You need to verify your email before you can log on to the CRN website or start posting comments on articles.
If you do not receive your confirmation email within the next few minutes, it may be because the email has been captured by a junk mail filter. Please ensure you add the domain '@crn.com.au' to your white-listed senders.