Canadian Mac Web site ehMac reports that Apple Canada is being sued by a former Apple direct dealer for five million Canadian dollars.

Computer Buyer's Warehouse Direct (CBWD) claims that Apple unfairly terminated its authorized dealer agreement after it "knowingly set-up an out-of-territory sale in order to induce the dealer to breach Apple's official Business Practices guidelines”.

There is one approved dealer in Canada - MacWarehouse. CBWD is alleged to have agreed to sell in only certain areas. Apple Canada, on publication of the CBWD catalogue, allegedly set up an out-of-territory sale. CBWD claims that Apple Canada used the event to terminate its five year relationship with the company.

CBWD claims Apple is engaged in anti-competitive practices by permitting MacWarehouse to hold a “virtual monopoly” on Apple sales in Canada.

Industry sources in Canada say that, should CBWD succeed in its suit, Apple will be forced to open up the Canadian market.