P1n3apqlExpr3ss: Hmmm, I dont think you guys get my point? Or maybe my thinking is flawed...
Say 2d, VF, XT and Skinny (without sim locks) can offer me a Galaxy S2 for $500 on a 24 month $50/month (lets say 2000 texts, 200mins, 1GB data) contract. At this stage they are all equal and will likely use advertising and brand loyalty to compete, no?
Then Skinny introduces sim locks and as a result of this induced economic benefit they can offer me the same plan except for $400 upfront and $45/month. This would give them an unfair advantage?
If my reasoning is flawed feel free to point out where I've gone wrong
Yes you reasoning is right, but what you are saying is wrong.
If you think about it like this all other players can offer phone XYZ for $200.
Skinny can offer phone XYZ for $100, but as a result of getting the discount you must either stay with skinny for 9 months or pay the unlock fee.
Not anti competitive, as they are offering a discount others can't but it also comes with downsides - like being unable to change providers.