Someone made an analysis of Australian law, particularly Australia’s competition law. The iPhone has undergone a similar challenge in Europe but in Australia, iPhone’s practice of only letting one wireless provider distribute the iPhone under a two-year contract might actually stick.
Dale Clapperton and Stephen Corones of Queensland University of Technology believes the iPhone could be illegal in Australia if it is distributed in the same way it is distributed in the U.S. and Europe. They published their analysis at the QUT Law And Justice Journal. Australian competition law allows handset lock in but not in the way Apple does it with the iPhone. Much of the price of other handsets are subsidized by wireless carriers in exchange of a contract. It does not work the same way with the iPhone. Apple, in fact, gets a significant cut of the subscription earnings.
“Where the carrier has not subsidised the cost of the phone, there seems to be no legitimate pro-competitive justification for locking the phone to the services of that carrier, especially where that locking is permanent and not just for the duration of the initial contract,” the article said.
There is still no announcement for the iPhone in Australia and it appears it’s a good possibility one would never be made. Sounds remarkably similar to Canada where we are still anxiously awaiting a Rogers iPhone doesn’t it?
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