Apple has been slapped with a $1.9 million fine after it agreed to settle a case brought by Australian regulators.
The Australian Competition and Consumer Commission was not all that thrilled by the fact that Apple marketed the new iPad as a 4G device in Australia, namely because its 4G LTE chips does not support Aussie 4G frequency bands. Regulators argued that Apple’s claims mislead consumers, who believed they could use Telstra’s 4G network.
Apple eventually agreed to drop the “Wi-Fi +4G” branding from the iPad and substitute it with something a bit more truthful, “Wi-Fi + Cellular.” Apple originally argued that some network frequencies classified as 3G in Australia operate as 4G elsewhere. Eventually Apple decided that it is better to take a slap on the wrist and make the whole problem go away.
In addition to the US$1.9 million fine, Apple will also have to settle court costs estimated at A$ 300,000. It doesn’t sound like much for Apple to stomach, after all the outfit claims to have sold more than three million new iPads worldwide since March, and sales of the old iPad 2 are still going strong.