The Federal Court of Australia has ordered that Apple Inc. (AAPL: Quote) pay a penalty of A$2.25 million ($2.29 million) for misleading public with regard to its new iPad cellular model.
Between March 8 and May 12, the technology giant used the product designator "iPad with WiFi + 4G" in advertisements implying that the device could connect directly to the Telstra LTE mobile data network in Australia, which it could not do.
The issue was raised by Australian Competition and Consumer Commission, or ACCC, which was the applicant in the case.
The new iPad cellular model can connect to 3G mobile data networks in Australia which operate at frequencies of 850MHz, 900MHz and 2100MHz. It can also connect to an LTE network that sends and receives data at some bands of the 700MHz or 2100MHz frequencies.
However, the new iPad cellular model cannot send or receive data at the frequency bands of the Telstra LTE network, which operates at 1800MHz.
"Apple used the product designator "iPad with WiFi + 4G", in relation to a device which could not directly connect with the only commercially available LTE network understood by Australian consumers to be a "4G" network," the court noted.
Apple has to pay the Commonwealth of Australia A$2.25 million within 14 days and should also pay the ACCC A$300,000 as contribution to its costs within the same time limit.
Elsewhere, a Dutch court ordered Apple to pay damages to Samsung Electronics Co. Ltd. (SSNLF.PK,SSNNF.PK) for infringing a patent covering technical communications in some of its mobile devices.
Damages will be calculated in the next couple of months.
AAPL closed on Wednesday at $585.74, down $1.67 or 0.28 percent, on a volume of 12.83 million shares.
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by RTT Staff Writer
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