Apple accused of unfair competition by Chinese company

Aug 31, 2017 06:16 GMT  ·  By

Shenzen-based phone accessory maker Pisen is suing Apple for what it calls “unfair competition,” after the technology giant has rejected its application for getting the MFi certification.

MFi, which stands for “Made for iPhone,” guarantees that a specific accessory works with Apple’s iPhone, iPad, and iPod, and Cupertino charges big money every company that’s seeking to get the certification.

Pisen says that despite trying to get the MFi certification several times, Apple said no, which makes the company believe that the iPhone maker uses its dominant position on the market in a way that impacts competition in China and impacts its own business.

“Apple is one of the greatest companies in the world. But great companies should not do things that are harmful to the interests of consumers,” Pisen's Chairman Zhao Guocheng was quoted as saying.

Focus on quality

Pisen says it’s currently the second-largest phone cable maker in China, with sales exceeding 60,000 units in August. Furthermore, the company says that Apple might be refusing to grant the MFi certification because its cables are substantially more affordable that the genuine cables – a Pisen cable costs only 24 yuan (that’s about $3.60), while the original Apple cable costs 149 yuan ($22.5) in China.

The Chinese firm says it guarantees for the quality of its products and even offers a free replacement within a year if any of the cables that it sells experience any quality issues, while also allowing customers to get a full refund within 30 days of purchase should they not be satisfied with the product.

Furthermore, it appears that Apple has tried to get Pisen’s products off the market by filing design patent infringing complaints in China, with several online stores already removing the cables from their sites.

Pisen is seeking nominal compensation of 1 yuan (approximately $0.15) for the losses it encountered due to Apple’s unfair practices, with the cited report indicating that the Beijing Intellectual Property Court has already accepted the lawsuit.

Apple hasn’t yet issued a statement on this lawsuit, but given the company’s typical approach when legal disputes are involved, we don’t expect any information to be provided anytime soon.