The Italian competition and market authority, Autoritá Garante della Concerrenza e del Mercato, is still not happy with Apple’s AppleCare practices. After fining Apple €900,000 (US$1,132,559), it says Apple has not changed its ways. AGCM is considering another fine, up to €300,000 (US$377,519) and possibly closing down Apple operations for 30 days.
In the United States, AppleCare extends Apple’s one-year warranty an additional two years. However, in Italy and some other EU countries, an initial two-year warranty is required by law.
Reuters reported that the AGCM claims that the information Apple provides to its customers does not explain the automatic two-year warranty. Therefore, customers may be unnecessarily purchasing AppleCare based on incorrect information.
Earlier this year, Apple lost its appeal of the initial fine that was imposed in December 2011. In addition to paying the fine, Apple had 90 days to change the information displayed on AppleCare package and in online descriptions, which it appeared to do, but AGCM claimed that Apple continues to use unfair practices in Italy.
AppleCare can be purchased for Macs, iPhones, iPods, and iPads and includes phone and in-store support as well as accidental damage coverage under the AppleCare+ option. The price for coverage depends on the price of the device.