Korea Telecom Fined for Cancelling Android Tablet Order
Published on: 15th Apr 2014
South Korea based KT (Korea Telecom) has been fined KRW 2.08 billion (USD2 million) by the country's anti trust regulator.
The company was said to have placed an order for 200,000 low-cost Android tablets from the electronics manufacturer, Enspert, with an initial batch request for 30,000 units.
When the sales of the tablet, which had been rushed to sale in order that KT could have tablets to offer ahead of a rival mobile network -- the company cancelled the order.
KT claimed that the manufacturer had been slow in rectifying defects in the original batch of tablets that were delivered, although Enspert argues that the defects were mainly due to regularly changing product specification from KT.
KT cancelled the contract, citing a clause added to another contract which Enspert said it was pressured into signing.
"KT's move was unreasonable, as the decision was made unilaterally," the watchdog said. "Enspert holds no responsibility concerning the cancellation of the contract."
KT says that it plans to appeal.