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Unlocking the Competitiveness of the Fee: Is Canadian Mobile Service Providers Charging a Fee to Remove the Software Lock after the Contract Expires Anti-competitive?

Most mobile phones in Canada contain software that prevents the consumer from using the phone on multiple networks. This is known as a ‘software lock’, and is installed prior to the point of sale by the mobile service providers. As of 2011, all three large Canadian service providers have adopted a similar practice to charge a fee to remove the software lock from phones. This fee applies even after the consumer’s service contract with the provider ends.
This thesis examines whether the practice of charging consumer a fee for removing the software lock after the contract expires is anti-competitive in Canada. Through examining economic theory and undergoing legal analysis, this thesis will argue that while the practice is clearly anti-competitive, it does not substantially lessen competition enough to be prevented under competition law. This thesis suggests that this industry practice should be prohibited through the passing of consumer protection legislation.

Identiferoai:union.ndltd.org:LACETR/oai:collectionscanada.gc.ca:OTU.1807/33442
Date22 November 2012
CreatorsMarrello, Byron
ContributorsIacobucci, Edward
Source SetsLibrary and Archives Canada ETDs Repository / Centre d'archives des thèses électroniques de Bibliothèque et Archives Canada
Languageen_ca
Detected LanguageEnglish
TypeThesis

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