Canadian Competition Bureau Closes its Investigation into Apple Conducting Anti-Competitive Practices
The Competition Bureau announced today that it is closing its investigation into concerns of anti‑competitive conduct by Apple related to its contracts with Canadian wireless carriers that sell and market iPhones.
The Bureau examined whether the contracts harm competition by impacting wireless carriers' incentives to promote iPhones over other brands of smartphones, and whether they resulted in an increase in the price of handsets or wireless services.
However, the Bureau did not find sufficient evidence to conclude that Apple has engaged in an abuse of dominance under the Competition Act.
In their formal statement, the Commissioner of Competition (Commissioner) announced in-part that he has discontinued an inquiry against Apple Inc. and Apple Canada Inc under the abuse of dominance provision of the Competition Act. The conduct at issue involved certain restrictions and obligations imposed on wireless carriers for the sale and marketing of iPhones to consumers in Canada
After conducting analyses of the information gathered over the course of the investigation, the Bureau has concluded that it does not have sufficient evidence to suggest Apple is contravening the Act in respect of the Apple Terms at this time. Specifically, the Bureau did not find evidence to suggest that the Apple Terms resulted in a significant effect on competition. The existing evidence suggests that the Apple Terms do not prevent wireless carriers and other OEMs from adopting strategies that serve to mitigate any potential effects of the Apple Terms.
The Commissioner makes his enforcement decisions based on the available evidence. Should new and compelling evidence come to light of harm in the Canadian marketplace, the Bureau will not hesitate to take appropriate action.
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