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Apple draws interest of antitrust regulators

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By Charles Starrett

Contributing Editor
Published: Friday, February 18, 2011
News Categories: Apple, Apps + Games

Both the Justice Department and the Federal Trade Commission have started looking at the new terms Apple set this week for media companies that want to sell content on the iOS platform, according to a new report. Citing people familiar with the matter, the Wall Street Journal reports that the groups’ interest in Apple is only at a preliminary stage, and won’t necessarily develop into a formal investigation or action against the company. Beyond the U.S., a spokesperson for the European Commission has said the commission is aware of Apple’s new policies and is “carefully monitoring the situation.” Earlier this week, Apple issued a press release announcing its new subscription service for the App Store, in which it revealed new rules that forbid companies from including links in their apps to sell content outside the app, force them to offer the same subscription price via In-App Purchase—of which Apple gets a 30 percent cut—as they do outside the app. Banning apps from linking to external sites “sounds like a pretty aggressive position,” said Eric Goldman, director of Santa Clara University’s High Tech Law Institute. “It seems like that’s purely in the interests of Apple trying to restrict people doing transactions they don’t get a cut from.”

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Comments

1

If your business model can’t afford 30%, it’s time to go back to business school.

Posted by Dan Woods on February 18, 2011 at 12:52 PM (PDT)

2

@1: Some of the most successful chain stores in America operate on an average of a 2%-3% profit margin. Maybe it’s you who needs a bit of education in business.

Posted by Code Monkey in Midstate New York on February 18, 2011 at 1:04 PM (PDT)

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