Technology news and Jobs arrow Fuzzy Logic arrow No iPhone in Australia because Apple afraid of local competition laws?
No iPhone in Australia because Apple afraid of local competition laws? E-mail
by Alex Zaharov-Reutt   
Tuesday, 26 February 2008
A statement from the QUT says that “this position is explored in an article, published in the QUT Law and Justice Journal this month by Mr Clapperton and QUT's Professor Stephen Corones, analysing the implications of the technological locking of the Apple iPhone under Australia's competition laws”.

Clapperton noted Apple’s presumed financial benefits from selling a locked iPhone through specific carriers, saying that: "US financial analysts have calculated that AT&T is paying Apple a US$18-a-month 'commission' per iPhone customer which, of course, is ultimately paid by the customer”.

He continued, saying that: "The digital locking of the iPhone forces consumers to use the mobile carrier nominated by Apple so that over the two-year contract term, the consumer would probably pay more in secret commissions to Apple than they paid for the iPhone in the first place."

While Clapperton noted that Apple's plans for releasing the iPhone in Australia had not yet been publicly announced but if its US marketing strategy were adopted in Australia, he said it would likely be prohibited by the Trade Practices Act 1974 (TPA) provision dealing with third-line forcing.

Clapperton finished by saying that: "This law will greatly simplify the task of seeking redress for such behaviour through the courts and could prove a deterrent for exclusive release of the iPhone with one carrier”.

Apple could perhaps evade breaking any local laws by offering a locked iPhone, with the benefits of an ‘unlimited’ data plan, as available overseas, while offering an unlocked iPhone, at a higher price, that can be used with any other Australian carrier.

The predicted launch of a 3G iPhone is likely something that is holding up the launch of the existing iPhone in Australia, and while many would like Apple to simply release an unlocked iPhone and be done with it, getting Apple to play by any but its own rules is certainly a challenge, whether you’re a government or not!

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