Canada Probes Apple For Alleged Anti-Competition Deals
The Canadian arm of Apple, Inc is facing investigation raps for alleged anti-competitive clauses it placed in contracts with domestic wireless carriers in Canada, the country's Competition Bureau said on Thursday.
But the bureau said it has yet to discover actual violations by Apple's Canadian unit, even as it had already lodged before the court an application to issue an order against Apple to turn over records relating to the ongoing investigation. It was unclear how the competition bureau based its decisions.
Apple's iPhone is being carried by a number of carriers in Canada, including its "big three" providers, Rogers, Bell, and TELUS. The other carriers include Virgin Mobile, Fido, Koodo, plus regional providers.
"There is no conclusion of wrongdoing by Apple Canada Inc. at this time, and no application has been filed with the Competition Tribunal or any other court to seek remedies for any alleged anticompetitive conduct," Greg Scott, a spokesman for the Competition Bureau, said, without identifying how the contract allegations came to the bureau's attention. "Should evidence indicate that the Competition Act has been contravened, the Commissioner will take appropriate action."
An independent body, the Competition Tribunal, deals with false advertising, mergers and restrictive trade issues.
The move to inspect Apple dealings in Canada, according to Anthony Lacavera, chairman of WIND Mobile and chairman and CEO of Globalive Communications Corporation,is "constructive."
"Apple has obviously got a dominant brand, and they are very powerful in the marketplace and have obviously a lot of consumer mindshare... In any case, it will lead to a review of the situation that will be constructive for consumers in the end. I don't think it's going to have any negative impact on Apple in any way, or on Wind," Financial Post quoted Lacavera. Wind, however, hasn't had any interactions with Apple to date, he said.
Recently, the Competition Bureau announced its support for Uber and other on-demand services. It said it believed such innovative business models have the potential to offer "important benefits to consumers through more competition, including lower prices, greater convenience, and better service quality for a variety of reasons."
The bureau recently launched a similar investigation into allegations of anti-competitive practices at Loblaw Cos. Ltd, the country's top grocer.