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?

摘要

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.