Are Canadian Apple Customers Getting Swindled?

Consumers in Canada may be paying more than a fair market price for Apple Inc AAPL’s iPhone—and other smartphone models as well. As part of an ongoing investigation into Apple Canada’s anti-competitive practices, Canada’s Competition Bureau recently filed a motion with the Federal Court demanding documentation of iPhone contracts from Canada’s major telecom providers.
 

Apple Canada fails to deliver
Anti-competitive clauses discovered in Apple Canada’s contracts with Canadian carriers first sparked the Bureau’s investigation over a year ago. Although Apple surrendered 46,000 documents to the Competition Bureau in March 2014, the Bureau has deemed the records insufficient and is now petitioning the Federal Court to include carrier documentation in the investigation.

Widening the search
In order to determine whether Apple has had a say in setting the prices not only for the iPhone but for competitors’ mobile devices, the Bureau is requesting documents from Canadian carriers including Bell Mobility, Rogers, Telus, MTS Inc., Bragg Communications Inc., Saskatchewan Telecommunications, Tbaytel, and Videotron Ltd. Gaining access to these requested papers, which date back as far as January 2008, requires approval from the Federal Court.

What a favorable ruling would mean
As of now, the Canadian Competition Bureau has yet to receive a ruling from the Federal Court regarding its submitted motion. If the Court rules in the Bureau’s favor, telecom providers will have 75 days to submit the requested documentation. Such documentation will contain information detailing how much carriers have agreed to pay for Apple iPhones, how iPhone costs are determined, and how all other smartphone plans are priced.