Really bad news for Apple! On 22 March 2012, Apple lost its appeal of a fine that was imposed in Italy in December regarding AppleCare extended warranty coverage for its products.
Apple products typically have one year limited warranty with AppleCare extending that coverage to a total of two years. The European Union (EU), however, dictated that all products are covered by a two year guarantee.
Italy had fined Apple €900,000 (US $1,180,000) in December for deceptive practices when they sold consumers AppleCare that took effect after only one year. This extended coverage overlapped the existing EU coverage and Apple didn’t make that clear to consumers.
Recently, Apple has come under fire in additional EU countries where two-year warranties are also required by law.
In addition to paying the fine, Apple must add information to its AppleCare packages about the existing two year coverage. It added that information to its online descriptions, some time back.
AppleCare can be purchased for Macs, iPhones, iPods, and iPads. It includes phone and in-store support as well as accidental damage coverage under the AppleCare+ option. The price for the coverage depends on the price of the device.
Apple has one more opportunity to appeal, but there has been no indication at this moment whether they would use it or not.
Source: The Mac Observer