Last week we told you that Apple may be subject to an antitrust inquiry from the Department of Justice over their iTunes music service. Now it seems that the DOJ inquiry may be going a little deeper than just Apple’s iTunes.
According to the New York Post, the Department of Justice is also investigating how Apple does business with media companies in areas beyond music, and it seems they may have contacted several media and technology companies to get their views on Apple.
Expanding the Scope of the Investigation
This is yet to be confirmed by the Justice Department and Apple, but it seems that Apple’s ban on Adobe’s Flash from their iPhone OS is what prompted the Justice Department to start looking into Apple. The ban on Flash has been a contentious issue, with Apple CEO Steve Jobs famously stating that Flash was not suitable for mobile devices due to its performance and security issues. This decision has had significant implications for developers and content creators who relied on Flash technology.
The inquiry is not just limited to the Flash ban. The DOJ is reportedly examining Apple’s broader business practices, including how it negotiates with media companies for content on its platforms. This includes the App Store, iTunes, and potentially even Apple TV+. The way Apple exerts control over its ecosystem, from app approval processes to revenue sharing models, is under scrutiny.
Developer Relations and Third-Party Applications
We have previously heard that there may be an inquiry into the way Apple deals with their developers, specifically with the last update to the developer agreement which excluded developers using third-party applications to develop iPhone apps. This move was seen as a way to force developers to use Apple’s own tools and technologies, thereby maintaining tighter control over the app ecosystem. Critics argue that this stifles innovation and limits developers’ freedom to choose the best tools for their needs.
For instance, the exclusion of third-party development tools like Adobe Flash and Unity has been a point of contention. Developers who were accustomed to using these tools found themselves having to learn new programming languages and frameworks, which could delay app development and increase costs. This has led to accusations that Apple is creating an unfair playing field, favoring its own technologies over others.
Moreover, the App Store’s approval process has been criticized for being opaque and inconsistent. Developers have reported instances where their apps were rejected without clear explanations, or where similar apps were treated differently. This has raised concerns about potential favoritism and the lack of a transparent appeals process.
The DOJ’s inquiry could have far-reaching implications for Apple’s business model. If the investigation finds that Apple has engaged in anti-competitive practices, it could lead to significant changes in how the company operates. This might include more lenient policies for third-party developers, changes to revenue-sharing models, or even the unbundling of certain services.
In conclusion, while the DOJ’s investigation initially seemed to focus on iTunes, it has now expanded to encompass a broader range of Apple’s business practices. This includes how Apple interacts with media companies, its ban on Adobe Flash, and its treatment of developers. The outcome of this inquiry could have significant implications for Apple’s future and the tech industry as a whole.
via Cnet
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