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Virgin Accuses Apple of Abusing Monopoly

worm eater writes "The Register reports that VirginMega (Virgin Group's online music venture in France) is asking the French antitrust authorities to force Apple to license the FairPlay DRM. If France agrees with Virgin, will this be a blessing in disguise for Apple, making their DRM format the defacto standard, or will it be the downfall of the mighty iTunes Music Store?"

23 of 394 comments (clear)

  1. IE-only shoppe by jez9999 · · Score: 5, Informative

    Le navigateur que vous utlisez ne vous permet de surfer sur ce site.
    Pour surfer sur ce site nous vous recommandons d'utiliser Internet Explorer comme navigateur.


    Looks like they don't want you using anything but IE to access their rather shitty site. Going in with IE, I can tell you it doesn't seem like there are any Windows-only features there that would justify not accepting other browsers; just doubtless lazy web design. Good example of a site to quote when somebody asks you for a major site that is incompatible with non-IE browsers.

    1. Re:IE-only shoppe by PhilipPeake · · Score: 1, Informative
      It gets worse. Try the site with Firefox on Linux and you get this:

      Les navigateurs adaptés au surf sur ce site ne sont pas encore disponible pour le système d'exploitation que vous utilisez. Voici la liste des plate-formes permettant d'accéder à toutes les fonctionnalités du site : - Plateforme Windows (98 SE et supérieur)

      Someone needs an attitude adjustment...

      For the language impaired, this translates as:

      The browsers suitable for surfing this site are not yet available for the operating system you are using. Here are the platforms permitting access to all the functionality of this site:- Windows 98 and later.

  2. Re:Am I missing something? by wulfhound · · Score: 4, Informative

    Players will be a profitless commodity within two years (as soon as 2GB flash chips are cheap and readily available, you can forget about the engineering challenges that shoehorning an HD in to a small, elegant box brings). Whether or not there is any money to be made from the other two depends on whether or not the DRM model wins out against both genuinely-free and illegaly-copied music.

  3. Re:Make it the standard by MORTAR_COMBAT! · · Score: 2, Informative

    I think you meant to say: HYMN.

    --
    MORTAR COMBAT!
  4. Re:iPod needs WMA by Neophytus · · Score: 2, Informative

    ... apart from being the format of choice in almost every other online music store.

  5. Bur Apple doesn't *own* FairPlay! by sh00z · · Score: 4, Informative

    The article ignores the fact that Apple has licensed FairPlay from Veridisc. It was not created in-house. Now, they may have negotiated themselves an exclusive license for some period of time, and more power to 'em, but this is NOT "Apple imposing an Apple-proprietary standard" as some would have us believe.

    1. Re:Bur Apple doesn't *own* FairPlay! by MoneyT · · Score: 2, Informative

      VeriDisc used to have a list of the people that used their technology and Apple wasn't on that list, so I'm inclined to think it's the later.

      --
      T Money
      World Domination with a plastic spoon since 1984
    2. Re:Bur Apple doesn't *own* FairPlay! by thatguywhoiam · · Score: 4, Informative
      The article ignores the fact that Apple has licensed FairPlay from Veridisc [64.244.235.240]. It was not created in-house. Now, they may have negotiated themselves an exclusive license for some period of time, and more power to 'em, but this is NOT "Apple imposing an Apple-proprietary standard" as some would have us believe.

      T'would be an excellent point, sir, were it only true.

      VeriDisc's FairPlay and Apple's FairPlay are not the same thing. Apple's version was indeed developed in-house, as a custom QuickTime-compatible DRM wrapper.

      Why do you think Real is browbeating Apple these days over 'opening' the iPod, when they could have otherwise just gone to VeriDisc and bought a license?

      --
      If Jesus wants me it knows where to find me.
  6. Re:Make it the standard by johnny_sas · · Score: 2, Informative

    "but who wants to waste cd's and time doing that"

    YOu can just use CDRWs

  7. Re:This Raises An Excellent Question by proj_2501 · · Score: 5, Informative

    VirginMega is a store, not a record label. Virgin Records isn't actually owned by the Virgin Group. It was sold off to EMI in 92, and V2 Records is now their record label, started in 96 after Branson's non-compete clause expired.

  8. Re:This Raises An Excellent Question by FatRatBastard · · Score: 2, Informative

    And, it's very very hard to say they have a 'monopoly' position, especially coming from RECORD LABEL.

    VirginMega isn't a record lable. You're confusing Virgin Records, which was sold to EMI a long time ago, with the rest of the Virgin Group.

  9. i am a bigger dork than you! by proj_2501 · · Score: 2, Informative

    JLG left apple in 1990. Apple allowed officially-sanctioned clones for the first time in 1995, unless you count the DynaMac, which salvaged parts from existing Macs.

  10. Re:What is Apple dominant in? by afidel · · Score: 5, Informative

    I don't know French law but under US law you have to abuse a monopoly position in order to get your wrist slapped (see Microsoft), simply having a monopoly does not place any burden on you. Natural monopolies are not a bad thing, if you have a superior product and the market naturally flows most of the business your way then you have been a good capatalist and produced a superior product at a price point that most of the market will bear.

    --
    There are 4 boxes to use in the defense of liberty: soap, ballot, jury, ammo. Use in that order. Starting now.
  11. Re:iPod needs WMA by Yaztromo · · Score: 4, Informative
    iTunes is able to import WMA songs and convert them to your format of choice

    Slight correction: iTunes is able to transcode WMA on Windows. iTunes on Mac OS X has no such capability.

    Yaz.

  12. Virgin, home of the $19.99 CD by mojoNYC · · Score: 2, Informative
    have you been in a Virgin Megastore and seen their CD prices?

    how do you think their $1.99 per song pricing structure will work out?

  13. Poor Virgin! by Performaman · · Score: 1, Informative
    They're going to have to get the French DGSE to spy on Apple for them! Don't believe me? The French will do it:
    • http://www.forensics-intl.com/art9.html

    "You may not be much safer while aboard an airliner. Anderson says the French have been accused of bugging seats in the first-class section of their airliners. Ditto for French hotel rooms frequented by executives. "
    --

    I have gas, but my car uses petrol.
  14. I must be missing something.? by nasor · · Score: 2, Informative

    How is Virgin being hurt by their current inability to use the iTunes DRM system? Since the iPod can play any mp3 file no matter where you get it from, it shouldn't be interfering with Virgin's (or anyone else's) ability to sell people digital music to play on the iPod. Right?

  15. Re:What is Apple dominant in? by coenbros · · Score: 2, Informative
    Let's assume for the sake of argument that Apple is not only dominant, but has a monopoly in the music download market. According to U.S. antitrust law, it is not illegal to gain a monopoly in a market segment if you do it through legitimate market forces, such as selling a really good product that the public really wants to buy. But once you are a monopoly in that market segment, you cannot use the power you now have as a monopoly to exert undue influence in other market segments. This was the crux of the antitrust suite against Microsoft. The findings of fact determined that they were a monopoly in operating systems, and that was OK. But they used the monopoly power to exert illegal influence in the web browser market (Doesn't that seem like such ancient history now?).

    So, by my argument, where has Apple done anything illegal by not licensing Fairplay? Of course, French and/or EU antitrust law may have more restrictive definitions. Apple's stance may also backfire on them in the end, but that would be another example of market forces making the determination.

  16. Re:It's obvious by Masker · · Score: 3, Informative

    Actually, in the last quarter, the iTMS did post a small profit.

    Also, the point isn't that FairPlay is driving sales of the iPod, but that Apple controls the total user experience of the iPod. It controls:

    1) The UI & hardware of the iPod
    2) The loading of music, playlist creation, etc. on the computer you use to interface with the iPod via iTunes
    3) The online purchasing of music for use on your iPod

    Apple, as they usually do, wants to have total control over all of those factors. It's the same damned thing they do with their OS & Hardware combo and their retail experience. They want to control everything, not because they're control freaks, but because "if you want it done right, do it yourself".

    --

    ---------The early bird gets the worm, but the second mouse gets the cheese.

  17. Re:Am I missing something? by abhikhurana · · Score: 2, Informative

    Well, it has always been and will always be players... I chatted with the MTV CEO about why they don't enter the music distribution business, considering that they already have the relationships in place. And then he brought me down to earth. How much do you think does apple earn from selling one song? About 20-30 cents. The rest goes to music companies and artists. So how many songs do you have to sell in order to make 50 million dollars, an amount which is fairly trivial actually for these companies. The answer is around 250 million... so there is no way that a company can make a lot of money here.. in fact apple pissed off a lot of people by carging 99 cents per song, because they set the industry standard, which no one can deviate from now.

  18. Re:This Raises An Excellent Question by Bones3D_mac · · Score: 3, Informative

    Actually, the major problem was that the clone makers (particularly PowerComputing) were starting to produce better hardware at lower prices than Apple could offer. Everyone jumped ship from Apple to PowerComputing due to the lower prices and higher-quality hardware.

    To this day, I still regard the Power Tower Pro as the best Mac ever produced.

    --


    8==8 Bones 8==8
  19. Re:This Raises An Excellent Question by BasilBrush · · Score: 4, Informative
    Who told you Linux has overtaken Macs on the desktop? It must have been someone pulling numbers from where the sun doesn't shine. If it were true, Google would be seeing more than 1% Linux hits or less than 3% Mac hits.

    You are wrong on your other two points too. iPod isn't what I'd call a niche, and record stores still sell orders of magnitude more than online music sites.

  20. Thanks for getting back to me by Ohreally_factor · · Score: 2, Informative

    The case here is a little more complicated.

    Exactly my point. It is very far from clear cut which is why you can't call it a "monopolistic tactic" without major qualifications and equivications. Two further counterpoints. One, last I heard, one in three mp3 players sold was an iPod. Apple might currently be the most successful player, but it is wrong to claim that they have anything approaching a monopoly position (yet. I'll concede that it could happen.). Second, they're not shutting out the record industry! The record industry, in the form of the dominant cartel, the RIAA companies, has the monopoly power and ultimately controls the product.

    Protocols and languages are both methods of transimitting information from one entity to another. Certainly protocols aren't NATURAL languages or human languages -they have a much smaller bredth of information that they need to be flexible enough to transmit - but the analogy is sound.

    It might be a sound analogy, but it not a perfect analogy. You and I could develop a computer programming language and not publish it in the public domain, and that language would still be useful for creating effective programs. There is no law that would require us to open that language to others, either freely or for recompense. We could have a "monopoly" on that language, but it could never become a monopoly because there would always be the (very easy) possibility of lots of competition.

    In your example, it sounds like the community created a new language, and the original work is not necessarily protected by copyright law when creating something new. Definitions of derivative works come into play here. If the language had been patented, the result might have been different, since patents do generally control derivative works, even new work if it is based on the patented work. Still, I don't know tha particulars.

    I do think you're on a good track that deserves further thought and follow up regarding interface as being langauge-like. (And I do agree with you philosophically about patents.) May I suggest you read Roland Barthes on the topic of Semiotics and Semiology? Check out Mythologies . From the Amazon book description: "For Barthes, words and objects have in common the organized capacity to say something. . ."

    As your argument currently stands, I find much fault. However, I do think you are on to something, maybe something larger than the current set of issues under discussion.

    --
    It's not offtopic, dumbass. It's orthogonal.