The world over Apple has been engaged with a lot of legal battles. One more is surfaced in the middle east, where Egypt has accused the tech giant of breaching competition laws.
According to a Bloomberg report, Egyptian authorities have given Apple 60 days to end ‘unfair restrictions’ on local distributors or face legal proceedings.
iPhone Prices in Egypt 50% Higher Than Elsewhere in the Middle East
Surprisingly, iPhone prices in Egypt are up to 50% higher than elsewhere in the Middle East. The authorities in Egypt are disappointed by Apple’s pricing policies and hence, drafted this action plan against Apple and its regional distributor.
As per the Egyptian Competition Authority, Apple is violating the law by stopping its regional distributors from selling products to Egyptian distributors. This has eliminated “intra-brand competition.” The authority also accused Apple of banning parallel imports of Apple products in the Egyptian markets.
The order released in the Official Gazette is likely to invite legal action against Apple and Arab Business Machine. The latter is Apple’s agent in the Middle East and operating the business from the United Arab Emirates.
Interestingly, officials from Arab Business Machine were not interested in answering any questions from media.
Giving reasons for higher prices of Apple products, the competition authority said that companies had a right to specify sales areas, but in Egypt the local market had in effect been isolated from the regional one, sending prices significantly higher than in other Arab nations.
For example, an iPhone Xs Max (512GB) is available at $1,306 in the U.A.E., And the same phone is being sold by an Apple authorized reseller at $1,983 in Egypt.
Apple’s all products in general and iPhones, in particular, have been rejected by many markets for the higher price. Though Apple launched iPhone XR at a reduced price, people are not willing to buy this phone. Probably, this might have led Apple to restart iPhone X production and offer subsidies to mobile operators in Japan.
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