No, the iPhone's not illegal in Australia

By Stephen Withers
Tuesday, 26 February 2008 11:52

Mobility

Some commentators and headline writers have a field day whenever something faintly negative surfaces about Apple.

Case in point: as my colleague Alex Zaharov-Reutt has reported, law researchers at the Queensland University of Technology have suggested the business model used by Apple to market the iPhone in the US, UK and Germany is at odds with Australia's Trade Practices Act, which generally forbids third-line forcing. (Basically, third-line forcing occurs when a sale is conditional on the purchase of goods or services from another supplier.)

This is very different from suggesting that the iPhone itself would be illegal in Australia, as implied by headlines such as "Apple's iPhone could break Aussie law".

Actually, I'm pleased to see the QUT report as it confirms my own (legally uneducated) view. However, as I've previously suggested elsewhere, there seems to be a simple answer for Apple.

At present, Apple does not have any retail outlets of its own, though the first Australian Apple Store will soon open in Sydney and the company also has a sizeable web and phone sales operation.

But who's saying Apple has to sell the iPhone in Australia?

What if its chosen carrier partner is the only company that sells the iPhone in Australia? That way, there's no third party involved - the customer is buying the phone and service from the same company. This seems to work for other 'exclusive' handset arrangements.

The main carriers - Telstra, Optus, Vodafone and 3 - already have a strong presence in shopping strips and centres under their own brands, and there are several well-known chains of phone stores that work with multiple carriers. So Apple wouldn't miss out in terms of retail presence.

But what about Apple resellers?

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