Apple will pay a $2.25 million (£1.4 million) settlement after being accused by an Australian watchdog of falsely advertising the iPad 3's 4G compatibility in that country, the company has said.

The Australian Competition and Consumer Commission (ACCC) filed charges against Apple in March, claiming that the company intentionally promoted the iPad's 4G functionality, even though it knew Australian networks did not offer LTE support. The group objected to Apple's advertising of the New iPad (also known as the iPad 3) because it "represents to Australian consumers that the product, with a SIM card, [can] connect to a 4G mobile data network in Australia, when this is not the case."

Apple told an Australian court that it would pay out the settlement, pending a final approval from the judge. In addition to the sum being handed over to the ACCC, the company will likely also pay $300,000 (£194,600) in legal costs.

After the charges were brought, Apple said it would offer refunds to customers who were deceived by the original promotion and marketing of the tablet. The company has since altered its advertising and modified its description of the device on its website.

The ACCC recently won an appeal against Google, in a case related to misleading paid search results.