Apple ordered to pay $2.25m fine plus costs in iPad ’4G’ case

Macworld Australia Staff
21 June, 2012
View more articles fromthe author

The Australian Federal Court has ordered Apple to pay $2.25m and an additional $300,00 in costs for misleading consumers about the capacity of its new iPad being able to connect to Australia’s 4G LTE network.

The Australian Competition and Consumer Commission (ACCC) filed the suit against Apple in March 28, claiming the company was guilty of false advertising by branding its device as  ‘iPad with Wi-Fi + 4G’. The ACCC argued that the label was misleading to consumers because it implied the third-generation iPad was compatible with Australia’s sole 4G network, run by Telstra, which it is not.

In a judgement today Federal Court Justice Mordy Bromberg ruled that Apple was liable for the misconduct and ordered the company to pay a $2.25 million fine and $300,000 in costs.

Do you think the Federal Court made the right decision – is Apple guilty of misconduct? Share your thoughts below.



3 people were compelled to have their say. We encourage you to do the same..

  1. TallyHo says:

    Telstra FakeG is implemented as LTE-Basic (not LTE-Advanced) because that is all the Ericsson retards who supply Telstra’s equipment had on offer (Telstra are locked in). Telstra FakeG operates on a non standard frequency because that was the spectrum Telstra already owned. The end result is a network that is not 4G, does not operate on a standard frequency, and requires custom handsets to be manufactured for it to work. Telstra’s network is wrong on so many levels which is hardly Apple’s fault.

  2. Scythe says:

    TallyHo, Well said. Telstra have also not committed to comply with 4G standards, and according to their head of marketing, the next upgrade will also not be standard, as they plan to use frequencies re-cycled from shutdown analogue television. In short, Telstra should be penalised for deliberate incompatibility with the most popular device.

  3. Matt says:

    I believe that you both are correct in what you are saying, but also you cannot sit there and say that Apple is also not to blame, they do research what mobile carriers & retail outlets is available in each country to:

    a) make sure their products are going to work as they promise
    b) ensure that a reputable company is going to sell their products and not make the apple brand look cheap.

    They would have full well known that Telstras “4G” network is not a true 4G network. They have done this in the past with the 3G version of the iPhone and explicitly stated on this product line that it isn’t compatible with every 3g carrier that was available in Australia at the time

    The reason apple did this was not on a mistake on their behalf, but for the only reason these companies go into business.


    Apple AND Telstra both hold the blame in this. However, pointing the finger at Telstra is going to get you no where as Telstra never listens to customer complaints as Im sure we have all had to deal with in the past and Telstra was not thinking, “Yea lets make sure our new 4G network is iPad compatible, thats number 1 priority”. Telstra created the network the way it did for its own reasons.

    Please remember that not all companies are as upfront as you think they are, Telstra and Apple are perfect examples of this as they both just do what they want and then tell its consumers what they will do.

Leave a Comment

Please keep your comments friendly on the topic.

Contact us