Apple Inc. (AAPL) has been fined nearly $2 million in the Brazilian state of Sao Paulo for selling the iPhone 12 series without chargers.

What Happened: Brazil’s consumer protection agency Procon-SP decided to fine Apple for the tech giant’s decision to remove the power adapter from the boxes of iPhone 12, MacRumors reported, citing Brazilian tech news outlet Tilt.

The watchdog said Apple’s move violated the Consumer Defense Code, according to the report. The tech giant has also been fined for allegedly misleading consumers about the water resistance in iPhones and for declining to repair iPhones that suffered water damage under warranty.

When informed by the agency about the alleged violation in December, Apple reportedly responded by saying that customers already have spare adapters and removing the power adapter from the boxes will reduce carbon emissions as well as the use of rare-earth metals.  

Why It Matters: At the launch of the 5G-enabled iPhone 12 models last October, Apple announced that the phones would ship without headphones and chargers in the boxes. The iPhone 12 models have been successful for Apple and helped the tech giant to report better-than-expected first-quarter results earlier this year.

Brazil is one of the largest phone markets in the world and Apple may be required to offer a concession if it wants to continue selling iPhones in the country.

Price Action: Apple shares closed about 0.5% lower on Friday at $119.99.