We have been hearing this week that Apple [AAPL] may be subject to antitrust inquiry with regards to their iOS and new mobile advertising platform, iAd.
There have been rumors this week that the Department of Justice and the Federal Trade Commission were debating between themselves on which one would be looking into Apple.
According to Bloomberg, they have decided that the FTC will investigate Apple, with regards to the changes to the policies in their developer agreement, that blocks certain types of advertising platform from iOS, the main company that this new agreement blocks is Google’s Ad Mob platform.
Google’s AdMob and Apple’s iAd
Google’s AdMob CEO Omar Hamoui released a statement this week which criticized Apple’s move, and basically called it uncompetitive. The FTC has yet to approve Google’s acquisition of mobile advertising platform AdMob. This acquisition is significant because it would allow Google to expand its reach in the mobile advertising market, which is rapidly growing as more users shift to smartphones and tablets. By blocking AdMob, Apple could be seen as trying to stifle competition and maintain a dominant position in the mobile ad space with its own iAd platform.
Apple’s iAd platform was introduced as a way to provide a more integrated and engaging advertising experience within iOS apps. However, the restrictive policies that Apple has implemented have raised concerns about whether they are unfairly limiting the choices available to developers and advertisers. This is particularly important because the mobile advertising market is a key revenue stream for many app developers, and having fewer options could potentially harm their ability to monetize their apps effectively.
Previous Antitrust Concerns
We have heard previously that Apple could be facing an antitrust investigation with regards to their iOS platform, which is used in the iPhone, iPad, and iPod Touch. The first time we heard about it was in regards to Adobe’s iPhone Compiler software, which was basically blocked from creating applications for the iOS platform. This move was seen as an attempt by Apple to control the development environment for iOS apps strictly, ensuring that all apps are created using Apple’s own tools and technologies.
The Federal Trade Commission has yet to confirm the antitrust inquiry against Apple. However, if the investigation proceeds, it could have significant implications for how Apple manages its ecosystem. Antitrust laws are designed to promote fair competition and prevent monopolistic practices, and if Apple is found to be in violation, it could be forced to change its policies to allow for more competition.
In addition to the potential antitrust issues with iAd and the developer agreement, there are broader concerns about Apple’s control over the App Store. Developers have long complained about the approval process, the fees Apple charges, and the rules that govern what apps can and cannot do. These issues have led to calls for greater regulatory oversight and even suggestions that Apple should be required to allow alternative app stores on iOS devices.
As the investigation unfolds, it will be interesting to see how it impacts Apple’s business practices and the broader mobile advertising market. The outcome could set important precedents for how tech companies are allowed to operate and compete in the digital age.
The Federal Trade Commission has yet to confirm the antitrust inquiry against Apple. As soon as we get some more information, we will let you guys know.
via Ars Technica
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