Apple Inc's Korean unit has paid compensation to a user of its
popular iPhone after collecting location data without consent, lawyers
and court officials said, the first payout by the company over these
complaints.

In May, Apple Korea was ordered by the court to pay 1 million won
($946) in compensation to Kim Hyung-suk, a lawyer, two officials at
Changwon District Court told Reuters on Thursday. They declined to be
identified because they are not authorized to speak to the media.

Kim's law firm, Mirae Law, said Apple made payment last month. Steve
Park, a spokesman for Apple Korea declined to comment.

Mirae Law said it was now preparing a class action lawsuit against
Apple for the unauthorized data collection. A website for class action
sign-up has been set up but was paralyzed due to heavy traffic.
(www.sueapple.co.kr)

Apple released a software update in May to fix a problem that enabled
its mobile devices to collect and store customers' location data. The
revelation that Apple's iPhone collected data and stored it for up to
a year has prompted renewed scrutiny of the nexus between location and
privacy.

U.S. lawmakers have accused the technology industry of exploiting
location data for marketing purposes - a potentially multibillion-
dollar industry -- without getting proper consent from phone users.
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Two separate U.S. groups of iPhone and iPad users have sued Apple,
alleging that certain software applications were passing personal user
information to third-party advertisers without consent.

Google Inc's Seoul office was raided in May on suspicion its mobile
advertising unit AdMob had illegally collected location data without
consent, in the latest setback to the Internet search firm's Korean
operations.

Executives of both Apple and Google have said they did not abuse the
information.

Any class action may further pressure Apple in the home market of its
key rival Samsung Electronics.

Samsung's flagship Galaxy S smartphone has emerged as a major
competitor to the iPhone.

The iPhone is sold by top mobile carrier SK Telecom and second-ranked
KT Corp in South Korea. KT, the major seller of the iPhone, said its
iPhone subscribers reach more than 2.7 million, while SK Telecom
declined to provide any details.

Apple sold a record 18.65 million units of its blockbuster iPhone
globally in the March quarter.

via http://freeworldnewrbegining.blogspot.com/

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