To normal people, $2.25 million is a huge amount of money. For company as massive and profitable as Apple, $2.25 million might as well be $2.25. Apple fell afoul of the Australian Competition and Consumer Commission over marketing claims that allegedly led consumers to believe new iPads they were purchasing were 4G compatible with local Telstra networks. However, the iPad would not connect to Australian 4G networks.

 

Colin Golvan, representative of the ACCC, called the fine "substantial" and said that it would send the message that this kind of behavior will not be tolerated. Apple is also contributing $300,000 towards the legal fees racked up by ACCC during the court case.

 

Apple is also offering refunds to any Australian that purchased the iPad expecting it connect to the Telstra 4G network before the legal case launched in March.

The Australian reports that Apple has now agreed that it engaged in conduct that was likely to mislead the public into believing that iPad could connect to the Telstra 4G LTE network. However, a representative for Apple indicated that the company still believed its iPad could in fact connect to 4G networks in Australia. Apparently, in Australia, just like the US, 4G can mean different things including LTE, WiMax, and HSPA+.

 

Apple's representative Alan Archibald QC said, "Your Honour doesn't know it, but there is a vast area that is controversial here."

 

Archibald also said that the judge should not assume common ground on the definition of 3G and 4G. Telstra's 4G network in Australia runs on the 1800 MHz frequency. Apple designed iPad to operate on 700 MHz and 2100 MHz 4G frequencies making the tablet incompatible with the Telstra network.