Canadian Court Orders Apple to Turn Over Records in iPhone Probe

Canadian Court Orders Apple to Turn Over Records in iPhone Probe

The Federal Court of Canada agreed on Wednesday to politely order Apple Canada to turn over documents to the Competition Bureau as part of an investigation into whether Apple unfairly used its market power to promote sales of its iPhones.

Gavel

Reuters:

In seeking the order, the Competition Bureau said agreements Apple negotiated with wireless carriers may have cut into competition by encouraging the companies to maintain or boost the price of rival phones.

Federal Court Chief Justice Paul Crampton told the court he would sign the order later on Wednesday.

At issue is the possibility that Apple misused their bargaining power vis-à-vis the iPhone when negotiating contracts with Canadian mobile carriers. Apple may have reached advantageous agreements with those carriers in order to maintain or even raise the price of competing phones in an effort to boost sales of the iPhone.

Apple will have 90 days to turn over the documents, including agreements signed with the mobile carriers.

Apple lawyers have suggested that they may launch a constitutional challenge to the right of the Canadian court to force Apple’s Canadian subsidiary to turn over records held by the California-based parent firm.

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