Australian Competition and Consumer Commission v Apple Pty Limited

This matter involves a proceeding brought by the Australian Competition and Consumer Commission (ACCC) against Apple Pty Limited for alleged misleading conduct in relation to the compatibility of certain tablet devices with software updates. The Federal Court was tasked with determining whether Apple had engaged in conduct that misled the public about the compatibility of its devices and whether the agreed penalty was appropriate.

The court had to decide if Apple's conduct constituted a breach of section 33 of the Australian Consumer Law (ACL), which prohibits misleading conduct regarding the characteristics of goods. Additionally, the court had to assess whether the agreed penalty of $2.25 million for four contraventions was appropriate. The court considered several factors, including the seriousness of the conduct, the deliberate nature of the misrepresentation, the exposure of consumers to misleading information, and the potential deterrent effect of the penalty.

The court concluded that the penalty was appropriate given the circumstances. Although concerned that Apple's financial strength might diminish the meaningfulness of the penalty, the court found no further transgressions likely and acknowledged the deterrent effect of the litigation and media attention. The cooperation shown by Apple and the absence of evidence of loss or damage also mitigated against a harsher penalty. The court imposed a total penalty of $2.25 million and made a declaration consistent with the parties' proposal. Apple was also ordered to contribute $300,000 towards the ACCC's costs, and the proceeding was dismissed.