Tuesday, 30 December 2014

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Apple Investigated in Canada over iPhone Sales

The tech giant has been ordered to hand over papers to the Canadian Competition Bureau. The agency investigates into whether Apple used unfair tactics to boost iPhone sales in the country, pointing out that the agreements Apple concluded with mobile networks could have encouraged the operators to increase the prices of rival phones.


Thanks to huge consumer demand for the iPhone, its manufacture got considerable bargaining power when negotiating contracts with mobile operators. Now the Competition Bureau thinks that Apple has abused its position.

Apple was given 3 months to provide all the documents to the agency, including the deals reached with Canadian mobile operators. In the meantime, agency pointed out that it was possible the tech giant could challenge of the right of Canadian courts to force its Canadian subsidiary to provide records held by the American parent company. On the other hand, the Canadian competition law enables the local courts to compel the production of documents held abroad.

Back in 2013, the European Commission made a similar step, sending out a questionnaire to mobile network operators trying to find out Apple’s sales tactics with iPhones. The Commission claimed it had information that the company may have colluded with mobile network operators, which could have potentially led to the foreclosure of other smartphone manufacturers from the markets. The investigation was ignited by complaints from networks about the contracts that had been struck with the company. In result, no anti-trust investigation was started.

Apple has recently won another long-lasting lawsuit concerning iPods and iTunes, where it was accused of preventing the use of competing music players by consumers.

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