Apple Inc Faces Canadian Court Amid Allegations of Pricing Influence

Did Apple Canada Inc. twist the arms of wireless carriers to boost the pricing, or decline the reduction of competitor phones to shine a light on the iPhone? That is the allegation facing the company from the Federal Court of Canada. The company has under 90 days to turn over requested documentation to the Competition Bureau for a review of pricing practices. It is possible Apple Canada may have entered into contracts with local wireless carriers with one stipulation, an anti-competitive clause.

The Competition Bureau said Apple Canada has not been accused at this moment of malicious practices, but they need to see the paperwork to verify the authenticity of the iPhone creator’s statements.

This past summer, The Hamilton Spectator discussed the sudden drop in sales for BlackBerries in the country. Rather, Apple was surging in the country with an established customer base reaching 42 percent of smartphone consumers. The report shared by the outlet also did list Android has one of the fastest growing phone choices in Canada. Currently, the Bureau is not reviewing any other manufacturer at this time.

It appears the government received information that indicated Apple Canada was working with wireless carriers to raise the price of other phones and stop reduced sale prices on models like Androids and BlackBerries, to boost the appeal of the iPhone.

The courts feel if this clause is in the agreement, it portrays a bargaining power of authority for Apple, while threatening carriers, and the level of competition.

Reuters said a lawyer for the Bureau indicated Apple would not take the actions easily. Rather, it is more than likely the company will challenge the request, calling it a constitutional violation of rights, since those documents are held by the California parent company.

The attorney for the Bureau, Derek Leschinsky, said requesting documents on pricing practices has never been found unconstitutional in previous cases.

Did Apple enter into agreements with local carriers to diffuse a reduction of pricing on competitor phones to boost the iPhone appeal? Curiously, will the case spur a review in the States for a possibility Apple’s influence may have expanded to wireless carriers there?

Apple has declined comment.