Apple Accused of Running a ‘Walled Garden’ Monopoly in Canada

Looks like Canadians are attempting to break down Apple’s App Store dominance here as well, and not just in the U.S.

The Samuelson-Glushko Canadian Internet Policy and Public Interest Clinic, better known as CIPPIC, has filed an application asking for permission to bring a case under the Competition Act, accusing Apple of abusing its dominant position in the App Store.

In the filing (via Do Not Pass Go), Ottawa-based CIPPIC describes Apple’s App Store as a closed “walled garden,” arguing that “Apple controls and supervises access to any software which accesses the iOS device.” The group says Apple uses strict contracts to force developers to distribute their apps only through the App Store and to rely exclusively on Apple’s own in-app payment system.

The non-profit consumer-focused CIPPIC is also taking aim at Apple’s commission fees, arguing they aren’t tied to the actual cost of providing App Store services. The application says Apple’s commission rates are “set arbitrarily, rather than by cost or value,” and describes them as “excessive and supra-competitive.” According to the filing, those fees have led to “persistent high margins and operating profits” for Apple.

The group also criticizes Apple’s rules that stop developers from telling users about other ways to pay. CIPPIC argues those restrictions “foreclose competition and innovation, raise costs, and limit consumer choice.”

CIPPIC says these practices end up hurting both developers and consumers in Canada by pushing prices higher and limiting choice. The application argues Apple’s conduct “is not objectively necessary or proportionate,” adding that less restrictive alternatives could still protect privacy and security without blocking competition.

The group is asking the Competition Tribunal to stop Apple from enforcing exclusive App Store distribution, mandatory use of its in-app payment system, and rules that block developers from directing users to other payment options. It is also seeking financial remedies that could be distributed to affected developers and Canadian iOS users.

The CIPPIC operates as a legal clinic out of the University of Ottawa’s Faculty of Law, tackling public interest in cases involving technology, competition, privacy, and consumer protection.

This isn’t the only recent effort to challenge big tech companies in Canada. Last month, Toronto-based indie game developer Alexander Martin, known online as “droqen,” launched a separate legal push targeting Google and Apple, arguing their business arrangements harm competition in the mobile space.

Martin has taken the unusual step of approaching Canada’s Competition Tribunal as an individual developer, seeking changes to the Competition Act. His complaint focuses on Google’s roughly $20-billion-per-year deal with Apple to remain the default search engine on iPhones and other Apple devices, a deal he argues discourages Apple from building a competing search product.