Apple accused of anti-competitive behaviour in Egypt, given 60 days to resolve issues

Apple accused of anti-competitive behaviour in Egypt, given 60 days to resolve issues
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Just one day after Apple was dealt a pretty big blow in China – Qualcomm was granted a preliminary injunction against the brand – the company is once again facing further issues. But this time, the problem lies in Egypt.

Apple’s iPhones have never been the cheapest smartphones on the market but this year the company has raised its prices to previously-unseen levels across the globe. One of these markets is Egypt, where the Egyptian Competition Authority (ECA) feels Apple has placed “unfair restrictions” on local distributors.

As it stands in the country, Apple’s iPhones can only be purchased through a number of official sales channels. This, according to the local authority, is designed to limit competition and is why Apple has been able to maintain such high prices in the market. For reference, an iPhone XS Max 512GB can be purchased for $1,668 in the neighboring United Arab Emirates. But in Egypt, the flagship device costs a whopping $1,983.

As a result of these findings, which were determined by a two-year investigation, the ECA is ordering Apple “remove any restrictions on the ability of a distributor” to sell iPhones in Egypt within the next 60-days. If the Cupertino giant fails to do so, the ECA will proceed with legal action.

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15 Comments

1. lyndon420

Posts: 6389; Member since: Jul 11, 2012

This kind of stuff is bs. Apple...Google...whoever...they should be able to charge whatever they like for their products. Especially if there are other options...it's not like the iPhone is the only phone available.

4. Tech-shake

Posts: 202; Member since: Nov 14, 2016

Be it Apple or any other brand, if they can set the price without any regulation, this causes a huge market inflation which affects the entire industry. Just for reference, due to the "Apple effect" every smartphone in egypt costs way more than any neighbouring country. if Apple can get away with it then other manufactuers are encourged to do the same.

12. rouyal

Posts: 1554; Member since: Jan 05, 2018

I wonder how much of that high price is tariffs and the countries' taxes being layered on.

14. Tech-shake

Posts: 202; Member since: Nov 14, 2016

The industry standard is to take the price of the phone in the home country, add 3-7% import, then add the tax of the country. Doing this would make the price of the iPhone 300$ more than it needs to be in Egypt. Again we are talking about Egypt here but since the iPhone 7 apple has been over pricing their phones drastically in many regions outside the US.

2. Yahiagalhoum

Posts: 8; Member since: Aug 27, 2018

In egypt Xs max costs 30000 Egyptian pounds Xr 20000

3. Bobbyv

Posts: 29; Member since: Oct 20, 2018

Yeahhh all Apple products should be banned all around the world. think different and switch to Android/Windows

5. Tech-shake

Posts: 202; Member since: Nov 14, 2016

the official Apple price of the Xs max (512GB) here is 6130 AED which is 1679$. where did you get your price phonearea?

6. joshuaswingle

Posts: 370; Member since: Apr 03, 2018

Hi! Thanks for pointing that out. I've updated the story with the correct 512GB model price

7. Leo_MC

Posts: 6173; Member since: Dec 02, 2011

And how will this affect the price, if Apple (or whoever) sells the same phone, at the same price to 1, 10 or 10k Egyptian distributors?

9. TBomb

Posts: 1047; Member since: Dec 28, 2012

See comment 4. but basically if you and i sell a gadget that the people can't feasibly make on their own and we say "hey lets charge twice as much as last year" basically we can cause people to spend unreal amounts on this gadget we make because were the only ones who can give it to them

13. Leo_MC

Posts: 6173; Member since: Dec 02, 2011

But the distributor for Egypt is the same one...

8. Galaxy_Apple

Posts: 129; Member since: May 24, 2015

never understood why Apple is the only company that charges more than the exchange rate for a particular product , they r countries where the iPhone XS starts at 1500$ and goes upto to 2000$ , the XR starts at 1000$ also its just silly n shows why their sales r slumping everywhere around the world or atleast no growth. Really bad strategy. No way Steve jobs would have gone this route , he often spoke about middle classes n stuff in interviews , he wanted apple to be expensive but affordable , The same price every year or lower just like they did with iPods , new apple cares only about profits share buybacks etc....

15. worldpeace

Posts: 3081; Member since: Apr 15, 2016

Different country have different tax, and other expenses that will add extra cost for Apple. But Apple charge that "extra cost" to iPhone's price. While other manufacturers cover that "extra cost" by cutting their profit margin to keep the phone price the same "or at least similar" around the globe

10. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

You dont need legal action. Just have the Egyptian court ro just ban any phone that costs over a certain price.

11. strategic_developer

Posts: 1627; Member since: Jul 17, 2018

I still wanna know how Samsung and Apple are pricing phone sold outside the US. How is it the iPhone at $999 and the Note at $999 dont cost the same in every country that both are sold in. It because Samsjnf sells more phone overall in each country and they have to payless taxes or import taxes?

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