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Canada probing Apple's iBookstore over "cultural heritage" worries
On August 20, Canada's Privy Council Office issued an order targeting Apple and the company's new Canadian version of the iBookstore. Referred to simply as an "order authorizing a review under the Investment Canada Act of Apple Canada, Inc.’s proposed establishment of a new cultural business carried on by iBookstore in Canada," the order means that Apple's investment in Canada will be scrutinized by the government to make sure it aids "Canadian culture."
The decision was noted today by Canadian law professor Michael Geist, and it relies on a section of the Investment Canada Act that allows the government to review investments for "cultural reasons."
The text of the brief order points to section 15 of the Investment Canada Act, which allows the government to review any investment, even those that would not normally be reviewable. The only stipulation is that the investment must concern "a prescribed specific type of business activity that, in the opinion of the Governor in Council, is related to Canada's cultural heritage or national identity."
Given persistent Canadian concerns about being overrun with American TV shows and movies and having the country's digital music market controlled by iTunes, it's clear the government wants to take a closer look at Apple's decision to open a major new e-bookstore in Canada.
Canada's Financial Post took a dim view of the decision, saying that "the government might do well to start the review process by asking the millions of iPod, iPhone and iPad owners of Canada for their views on the matter. Though we all already know what they would say."
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