Apple PENALIZED Down Under

An Australian judge has approved an A$2.25 million fine against Apple (NASDAQ:AAPL) for advertising claims about 4G compatibility for the third-generation iPad, which went on sale there in March.

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Apple and the Australian Competition and Consumer Commission reached a settlement earlier this month, but had been awaiting court approval, which was finally granted by Federal Court Justice Mordy Bromberg on Thursday. The settlement amounts to US$2.29 million.

The ACCC took issue with Apple’s promotional materials for the launch of the third-generation iPad in Australia in March, arguing that the 4G version of the device misled Australian customers into thinking that it would work on the country’s Long Term Evolution networks.

While Apple initially defended its actions, it ultimately rebranded the device, and last month began calling its 4G-capable tablet the “iPad Wi-Fi + Cellular,” dropping the 4G claim from the product name completely. Though Apple asserts the device “supports very fast cellular networks,” it now warns consumers that it will not work with Australian 4G LTE networks.

Shares of Apple (NASDAQ:AAPL) are trading lower $4.49 at $581.26 per share as of 2:37 pm EST.

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