Apple could be shut for 30 days in Italy

in International Business

Apple could be shut for 30 days in Italy

Italian authorities have threatened Apple that it could be shut for 30 days because of a row about product warranties.

Apple is accused of not informing its customers in Italy about its standard free two-year warranty. Instead, the company has been pushing its own paid-for service contract.

The company has already been fined 722,000 Euros in late 2011, and could face more financial penalties if it does not comply.

Apple’s action has been constituted as an “unfair practice” by the Applied Modelling and Computation Group (AMCG).

Apple had made some attempts to do a better job of telling customers in its stores and online about the free warranties, said the AMCG, but the changes had not gone far enough.

The standard warranty and Apple’s own plan, called Apple Care, do not offer the same protection to customers. The standard Italian warranty means firms have to replace a product if it proves defective as soon as it is taken out of the box.

By contrast, Apple Care is for problems that occur after the gadget in question has started to be used.

If Apple does not comply, its stores and other operations would be closed for 30 days by the AMCG authorities and it could face a further fine of 300, 000 Euros.

Apple has 30 days to respond before action is taken.

In a statement, Apple said: “We’ve appealed the recent decision of the court as it was, in our view, based upon an incorrect interpretation of the law. We’ve introduced a number of measures to address the [Italian authorities’] concerns and we disagree with their latest complaint.”

Apple has been involved in various legal cases in different parts of the world.

Recently, Apple was in a dispute with Chinese firm Proview over the rights to the iPad name in China. Apple settled the dispute on Monday for USD 60 million.


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