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ARTICLE · 12 JANUARY 2017

No Bad Apple Here: Competition Bureau Ends Two-Year Investigation Into iphone Contracts

The Bureau generally considers clauses of this nature to be vertical restraints that may impair competition.

CanadaAntitrust/Competition Law

The Competition Bureau (the Bureau) recently announced the discontinuance of its investigation into whether Apple Inc. and Apple Canada Inc. contravened the abuse of dominance provisions under the Competition Act (the Act) (see here). After an investigation spanning over two years, the Bureau was unable to find sufficient evidence that Apple's conduct substantially lessened competition, a necessary element for finding abuse of dominance under Section 79 of the Act.


The issues

In 2014 (way back in the iPhone 5 and 6 era), the Bureau received a marketplace complaint prompting an investigation into contracts between Apple and Canadian wireless carriers concerning the sale and marketing of iPhones. In particular, the Bureau was concerned about contracts Apple had with wireless carriers containing clauses that provided for:

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