By Paul Vieira
OTTAWA--Canada's antitrust probe of Apple Inc.'s Canadian unit
focuses on whether the country's smartphone users pay more for
wireless services and devices due to conditions in the contracts
between the U.S. technology concern and telecommunications
companies.
According to documents filed by Canada's Competition Bureau with
the Federal Court of Canada this week, the antitrust watchdog says
clauses Apple Canada Inc. uses in its contracts with the country's
wireless carriers may "increase the price Canadian consumers have
paid, are paying or will pay for handset devices and wireless
services."
According to court filings, the competition bureau indicates
clauses in Apple Canada contracts "may likely" lessen competition
because they, among other things, discourage wireless carriers from
cutting prices on Apple products, most notably the iPhone, and
encourage telecom companies to "maintain or increase" the price of
competing handset devices.
A bureau spokesman said there isn't a conclusion of wrongdoing
by Apple Canada at this time, and there's no application before
judicial bodies to seek remedies for alleged anticompetitive
behavior. The probe is continuing, the spokesman said.
A spokeswoman for Apple Canada declined to comment.
The wireless carriers cited in the court documents weren't
identified by named. But three companies dominate Canada's wireless
sector: Rogers Communications Inc., BCE Inc. and Telus Corp.
The documents were filed as part of a motion the Competition
Bureau is expected to bring before a Federal Court judge as early
as next week to compel Apple Canada to produce documents dating
back to 2008 as part of the agency's probe.
The bureau informed Apple Canada of its investigation on April
2, and a preliminary meeting between antitrust officials and Apple
executives unfolded roughly a month later.
The bureau's filings indicate wireless carriers have provided
material to the antitrust watchdog, including communications with
Apple executives that cover matters such as the terms Apple and
Apple Canada would agree to in contracts with telecom firms.
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