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Antitrust probe into Apple could be imminent, source claims

updated 09:40 am EDT, Mon May 3, 2010

Tied to locks on development process

Apple will soon be the subject of a US antitrust inquiry, according to a source contacted by the New York Post. The Department of Justice and the Federal Trade Commission are, at present, said to be just days away from deciding which organization will launch the probe, looking into whether Apple might be unfairly controlling development of iPhone and iPad apps. The company recently banned the use of third-party tools, most notably Adobe's Flash cross-compiler.

Apple insists that the ban is a matter of ensuring quality, but the probe is expected to ask whether it unfairly skews competition by forcing companies to develop either for Apple or for everyone else. If examination shows some merit to the case, matters may then be elevated into a full-scale investigation, including a subpoena to Apple requesting details about its development policy. DoJ and FTC officials have refused to comment; Apple has not returned calls.

The company has fallen under increasing fire for the App Store. The platform is the only sanctioned way of installing apps on Apple handhelds, and developers are not only prevented from using third-party development tools but third-party APIs. On top of this the company has been accused of hypocrisy in content standards, for instance by banning most "overtly sexual" apps while continuing to carry Playboy.

by MacNN Staff

(33)

TAGS :

iPod, iPhone, industry, developer, FTC, antitrust, App Store, Apple, iPad

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TomSawyer
Fresh-Faced Recruit

Joined: Jan 2008

-15

05/03, 10:13am | report spam | close Reply |
Not surprising

Given the level of illicit Federal intrusion into State/Corporate affairs of late, this should come as no surprise.

doctor9
Fresh-Faced Recruit

Joined: Aug 2001

+9

05/03, 10:25am | report spam | (1 reply) close Reply |
Mixed feelings

I'm one who feels that Apple, in developing & selling this product, should be able to determine what is the best method of user experience. The App Store has been a blessing and a "killer app" for the iPhone's success. I'd venture to say that a great majority of iPhone owners have no problem whatsoever with the App Store and what it may or may not allow them to use.

On the other hand, Apple needs to understand that there are people whose profession is developing these applications. You can't be arbitrary with how you approve these submissions when then are people's livelihood on the line. They should be much more precise in the language, parameters, terms and conditions are what is appropriate for an iPhone app. Even more so, making moral and behavioral judgements on what is deemed appropriate is even more of a problem. And finally, adhere to those conditions on a consistent basis.

My .02¢

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Mr. Strat
Fresh-Faced Recruit

Joined: Jan 2002

-22

05/03, 10:25am | report spam | close Reply |
Beat me to it

The previous poster beat me to it. With the anti-business attitude of the Narcissistic Community Organizer, it doesn't surprise me that they'd go after a successful company like Apple. The Bamster's technical expertise is no doubt on a par with His understanding of private enterprise.

derbbre
Fresh-Faced Recruit

Joined: Oct 2000

+14

05/03, 10:29am | report spam | (1 reply) close Reply |
That's the way it is

If I develop a part for a Ford F-150, can I use the same part on a Dodge RAM? No? UNFAIR! All parts should fit all cars. Sheesh. If I develop for Linux can I use the same program for Windows. UNFAIR!

Let a good product be a good product.

And, everyone, stop trying to politicize something that isn't political. WEe get it, you don't like the current president. A tech blog site really isn't the right place to spout.

Glasspusher
Fresh-Faced Recruit

Joined: Oct 2000

+8

05/03, 10:30am | report spam | close Reply |
hmmm...

This should be interesting. The first killer smart phone comes out with specific rules for making things well on it and getting accepted, and they get slammed. Guess RIM & Windows mobile didn't have this problem since apps for those platforms are so craptastic.

Surely, apple will come under more scrutiny as they become the dominant player, but when they make the best stuff, is this so bad (contrast with M$). Also, isn't Android a decent competitor to the iPhone now? WTF?

Also, isn't it amazing I'm still a fresh faced recruit even though I registered here 10 years ago? Must be the face soap I use.

facebook_Thomas
Via Facebook

Joined: May 2010

+11

05/03, 10:36am | report spam | (1 reply) close Reply |
I agree with Doctor9

No one seems to complain this much about the Nintendo DS or the wii or the xbox or the playstation but why is Apple forced to let developers do what they want instead of what Apple wants?

Where is the cross compiler complaints for making DS and PSP games? Why doesn't the PSP play flash or make phone calls? Why doesn't my toaster stream MP3s? I know I'm getting ridiculous here but that is basically what this is about.

Basically what is going on is that Apple really does have the best mobile device in the world and everyone wants one but they want it to have that one extra feature or option or software that would make it worth their money. It is already worth your money and if not then buy another mobile device but don't force a lawsuit on them because it does due what YOU want.

Adobe being the biggest developer complaining that they can't play on the iPhone has many other mobile devices to play on yet none of them have full flash working. Why is that? Maybe because it can't but because we all want it we should sue Apple so they put flash on there so we can be happy again. And while we are at it lets just add that removable battery, and larger camera, and sue AT&T to allow tethering and let every company stream full HD to our phones because we want it and don't care about the network bandwidth or anything except making our wants fulfilled!

Roger@MacNN
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Joined: Jan 2008

-5

05/03, 10:45am | report spam | (1 reply) close Reply |
Fairness

So far I think doctor9 is the only one who gets it. The government isn't objecting to Apple having a proprietary store with proprietary apps; when you start to impose barriers on developing for other platforms, you've crossed the line.

herojig
Fresh-Faced Recruit

Joined: Jul 2009

-4

05/03, 10:55am | report spam | (1 reply) close Reply |
sounds like a false rumor or bad joke

this can't be true...is this America or the EU?

Eldernorm
Fresh-Faced Recruit

Joined: Sep 2007

+5

05/03, 11:03am | report spam | close Reply |
Just a thought here....

Is this imminent investigation from the same source that was sure that Adobe would sue Apple for not running FLASH on the iPhone, iPad...??????

Just a thought here.
en

wingdo
Senior User

Joined: Apr 2001

-8

05/03, 11:07am | report spam | (3 replies) close Reply |
Pot meet Kettle

Aren't you the same people who were all over the unfairness of Microsoft and their intertwined IE browser? All of us Apple fans were all pushing for MS to get hit big time over that. It's way different when they come after Apple isn't it?

JBytes
Fresh-Faced Recruit

Joined: May 2000

+3

05/03, 11:09am | report spam | (1 reply) close Reply |
Re: Fresh-Faced Recruit

"Also, isn't it amazing I'm still a fresh faced recruit even though I registered here 10 years ago? Must be the face soap I use."

We should form our own little "Fresh-Faced" club.

DeezNutts
Fresh-Faced Recruit

Joined: Apr 2008

+3

05/03, 11:17am | report spam | (1 reply) close Reply |
Re: That's the way it is

Nice failed analogy there.

A more accurate one would be can you produce a part for a Ford and sell it on your own?
If you make an aftermarket part for a Ford, can Ford dictate that you sell that part only through Ford Dealerships?
If Ford does not like your part for any reason, can they simply put you out of business by sending you a letter and refusing to sell your part through their dealership network, essentially leaving you no other way to bring your part to market?

Jonathan-Tanya
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Joined: Oct 2004

+3

05/03, 11:19am | report spam | close Reply |
What a tragedy you think this is Obama

You will never be part of the solution, until you figure out the problem.

Bush absolutely increased the power of the Federal government, all across the board, both in terms of size and scope.

Obama doing it? Yes, you bet he does. Bush didn't? LOL, what planet do you live on?

The old see-saw back, flip-flop party has been in control for many generations now, and until you figure that out, you ARE THE PROBLEM.

Bush dramatically grew the size of the Federal government, so is Obama, so is the next president, whether he or she, be Republican or Democrat.

The only way that would ever change, is if the country as a whole had a sudden change of heart, in terms of the way it viewed the responsibilities of government and there is about zero chance that will happen.

Jonathan-Tanya
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Joined: Oct 2004

+3

05/03, 11:33am | report spam | close Reply |
History Lesson

Jimmy Carter - Democrat, country tired of that and then flip-flopped too
Ronald Reagan, then George Bush Sr., Republicans, then a flip-flop too
Bill Clinton, after that we flip-flopped to:
George W. Bush, after that we flip-flopped to:
Barack Obama

During this entire time, without any exception, every President grew the size of the Federal Government.

Now, regardless of your political position - because indeed some of you approve of Federal Government and want to see it grow in power, but this person - as a solution to what he sees as a problem, of the growing power of the federal government, seriously suggested the answer, is another party switch flip-flop.

Illogical. Why would, yet-another flip-flop make any differnece in terms of the size of the Federal Government? These flip-flop moves don't achieve a shrinkage of the size of the Federal Government - not in terms of spending, not in terms of privacy, not in terms of states rights - not on any level, has that happened in any of these administrations.

But the 'flip-flop' is the answer to our countries problems. WOW.

gor3don
Fresh-Faced Recruit

Joined: Nov 2005

+2

05/03, 11:58am | report spam | close Reply |
Enough

of the politics. Please. All governments s**k. Let's leave it at that. Thank you.

mtnrunner2
Fresh-Faced Recruit

Joined: Sep 2009

+1

05/03, 12:13pm | report spam | close Reply |
Government thuggery

Any time a business gets too big, or their competitors start whining, the government steps in and knee caps them.

It just goes to show what our government's real attitude towards success is, and helps to explain the stagnant economy we are in.

hayesk
Professional Poster

Joined: Sep 1999

+5

05/03, 12:23pm | report spam | close Reply |
Doubt it.

Antitrust violations often come down to one of two things:
1. Does a company use its market dominance to force out competition.
2. Does a company use its market dominance to force dominance in another market.

So, does this apply to point 1? Not really. Apple isn't forcing developers to make a choice. Any company is free to make apps for Android and iPhones - nothing Apple is doing is preventing that. Cross-platform development environments are simply a crutch to do things more lazily. It's not difficult for any developer to efficiently design and implement natively an app on two platforms. Besides, for any developer that is any good, learning a new language is trivial, and learning another framework is only a matter of time - and this is assuming a company hires the same single developer to make both apps.

And does it apply to point 2 - no, not at all. Microsoft knows more about that than Apple.

HowardG
Fresh-Faced Recruit

Joined: Mar 2001

+4

05/03, 12:28pm | report spam | close Reply |
Nothing to see here....

Its Apples hardware and their software they have no grounds for anti-trust.

There isn't even a monopoly here.....move along.

MisterMe
Fresh-Faced Recruit

Joined: May 2007

+2

05/03, 01:06pm | report spam | close Reply |
re: Doubt it

hayesk wrote "Antitrust violations often come down to one of two things:
1. Does a company use its market dominance to force out competition.
2. Does a company use its market dominance to force dominance in another market. "

Well written. For all of the anti-Government caterwauling, there is only a rumor that there may be an investigation. As of now, there is no US Government investigation of Apple for antitrust or anything else.

What if there were? The fact is that not all investigations find enough evidence to move forward.

Consider this: In the Microsoft case, Microsoft was investigated, tried, and found to have illegally dominated the market of Intel-based personal computers. Apple is in a very different situation. In the US, Apple is a single hardware provider for a single cellular telephone provider.

Can AT&T be classified as a market? Can Apple be considered to have illegally dominated the market that is AT&T? I think no. AT&T has other choices of other providers which it uses to great affect. AT&T customers have numerous other choices of hardware and data/voice plans. Developers have choices. Are any of these choices impeded by Apple in any way? To the contrary, Apple sponsors WebKit, on which Google bases its on browser.

For those running around like your hair is on fire, calm down. Even if the rumors are true, the antitrust division of the US Department of Justice is only doing its job. Heck, I can remember when there were serious discussions of breaking-up General Motors because it had over 50% marketshare in the US. However, the case was never filed. Keep this in mind whenever the subject of antitrust and Apple are mentioned in the same sentence.

charlituna
Fresh-Faced Recruit

Joined: Sep 2009

+3

05/03, 01:10pm | report spam | close Reply |
comment title

1. anyone in NYC will tell you that the Post is only about a half step above being a rag.

2. Apple does NOT have a major market power to abuse

3. This claim of either/or is bull. Nothing in the developer agreement says that I have to only do my apps for the iphone. I can totally make a version for anything I want. If I choose to do the added work

4. Flash has been missing from the iphone OS from day one. so why has it taken 3 years for anyone to do anything about Apple's "abuse"

graxspoo
Fresh-Faced Recruit

Joined: Nov 2008

-3

05/03, 01:49pm | report spam | close Reply |
I'm glad

There may not be a case, but I'm really glad they are at least looking into it. Personally I WILL NEVER DEVELOP SOFTWARE FOR ANY PLATFORM WHERE THE GATEKEEPERS OF THAT PLATFORM FEEL THEY CAN DICTATE WHAT TOOLS I USE. Let users judge if my software is substandard.
And, FWIW, Adobe Lightroom is kicking Apertures rear-end, and it is created with a cross platform library. Take that Apple.

ggirton
Fresh-Faced Recruit

Joined: Nov 1999

+3

05/03, 03:15pm | report spam | close Reply |
pot met kettle

I like it!
But Elmer-Dewitt points out in his Fortune blog :

"To win a Sherman Antitrust case against Apple, the government would have to prove both that Apple's market share constitutes a monopoly — itself not illegal — and that it has abused that monopoly power in ways that damage its competition."

"While it is true that Apple controls what apps can run on its mobile devices and even what tools developers can use to write those apps, it's going to be harder to show that it has a monopoly of the smartphone market or that its competitors have been harmed the way Microsoft's were."

My conclusion: Unless you're obsessively concerned with the details of antitrust law, it's a waste of time to argue about it, or even think much about it, except from a "media coverage" point of view.

mytdave
Fresh-Faced Recruit

Joined: Aug 2000

+2

05/03, 03:58pm | report spam | close Reply |
kettle/pot not

@wingdo - There is a major difference between the M$ cases with IE, etc. and this concern with what Apple is doing. M$ was pushing IE to the exclusion of others, not just because they included it with their OS. They were pulling licenses from OEMs if the OEM had the audacity to bundle an alternate browser on their PCs.

M$ was using their monopoly position to stifle competition; Apple is doing no such thing here. Apple holds no monopoly on the smartphone market, and devs are welcome to code for iDevices or any other platform.

Apple is within its rights to specify what types of tools and code is acceptable for their platform... Nothing will come of any antitrust investigation into this. Looking into the legitimacy of the Apple approval process would be a far more productive investigation - there could be a small chance of proving anti competitive practices there - such as Apple's refusal to allow competing browsers or other programs that 'duplicate core features' of the iDevice.

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Antitrust probe into Apple could be imminent, source claims

updated 09:40 am EDT, Mon May 3, 2010

Tied to locks on development process

Not surprising

Mixed feelings

Beat me to it

That's the way it is

hmmm...

I agree with Doctor9

Fairness

sounds like a false rumor or bad joke

Just a thought here....

Pot meet Kettle

Re: Fresh-Faced Recruit

Re: That's the way it is

What a tragedy you think this is Obama

History Lesson

Enough

Government thuggery

Doubt it.

Nothing to see here....

re: Doubt it

comment title

I'm glad

pot met kettle

kettle/pot not

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Antitrust probe into Apple could be imminent, source claims

updated 09:40 am EDT, Mon May 3, 2010

Tied to locks on development process

Related Articles

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Not surprising

Mixed feelings

Beat me to it

That's the way it is

hmmm...

I agree with Doctor9

Fairness

sounds like a false rumor or bad joke

Just a thought here....

Pot meet Kettle

Re: Fresh-Faced Recruit

Re: That's the way it is

What a tragedy you think this is Obama

History Lesson

Enough

Government thuggery

Doubt it.

Nothing to see here....

re: Doubt it

comment title

I'm glad

pot met kettle

kettle/pot not

Login Here

10 Most Read

10 Most Discussed

MacNN Marketplace