Apple has offered to refund Australian customers for its new iPad, after it admitted that the device was not compatible with the 4G networks in the country.
Australia's Competition and Consumer Commission had taken the company to court, saying it broke four sections of Australia's advertising law.
In a statement Apple said that it was prepared to publish a clarification about the tablet's Australian capabilities, and refund any customers who felt they had been misled by the 4G reference. However it is not prepared to put stickers on its packaging, as per the Competition Commission's demand.
Paul Anastassiou, counsel for Apple, said they would contest claims that it had misled consumers because the third-generation iPad did work on other Telstra frequencies.
The Guardian reports that Australia does have 4G service on the Telstra network but the new iPad connects to 4G on the 700MHz and 2100Mhz frequencies, neither of which is used by Telstra.
On its website, Apple spells out that the new iPad's "4G LTE" capability is supported only on networks in the United States and Canada.
BBC News reports that the matter could go to full trial after the Easter break.