Apple Facing New Antitrust Investigation
mantis2009 writes "After recent complaints of anti-competitive behavior, the US Department of Justice has opened an inquiry into Apple's business practices for selling music. Investigators have specifically asked whether Apple colluded with record labels to thwart Amazon.com's music download store, according to the ever-present anonymous 'people briefed on the situation.' Allegedly, Apple threatened to retaliate if any music label participated in Amazon's 'MP3 Daily Deal' promotion, which offered early access to some MP3 tracks." So it looks like the Justice Department won the DoJ vs. FTC fight for the regulation bully pulpit.
Today wasn't the best day to become the highest-valued IT company in the world - edging out MSFT (219.18B) by having a market cap of 222.07B.
To give an idea of the scale of that achievement, Apple's share price has climbed about 560% in the past five years. Microsoft's is up 4%. Sure, market cap isn't a hugely useful measure (beyond bragging rights) of the value a company brings, but the trend is an interesting one, at least for Apple shareholders
Simon.
Physicists get Hadrons!
Since when is stopping companies from breaking the law bullying?
The Justice Department has also reportedly been investigating the hiring practices at Apple and other top technology companies, including Intel, I.B.M. and Google, asking whether the companies have improperly agreed to avoid hiring each other’s employees.
I would like to see specifically what this investigation is about. I don't see why companies can't make this type of agreement. It sounds like an agreement to respect each others trade secretes by not hiring each others employees.
Anonymous comments are as pathetic as the anonymous "sources" that contaminate gutless journalism from the New York Time
As i've been ranting about for a while now... It's time to either let Microsoft run its business in the same manner Apple does... or force Apple to deal with the same nonsense all of you impose on Microsoft.
When will we end the hypocrisy? Leave Microsoft alone, and go after the real evil... Apple.
The Music industry is probably still mad that Apple fought their 0.30 $ increase in prices and has the leverage to do so.
This doesn't seem like a big deal. The barrier to entry in creating an online music store seems pretty low, plus the files are now DRM free and playable on any player. Apple just seems to not want Amazon to get music before it does.
Not the mention it was a minor miracle that Steve Jobs got the major labels to sell their music online in the first place. I think that head start put itunes music store in the position it is in today.
Heh, investigating Apple for leveraging dominance against the RIAA, A cartel convicted of antitrust abuses several times? How about dealing with them effectively first?
What, do the copy editors come from the Weekly World News now? Even fark has better, more accurate headlines.
It says bully pulpit. Which is something else entirely.
/...
Bill Gates was quoted as saying "Muhahaha! How the tables have turned!"
If the only way you can accept an assertion is by faith, then you are conceding that it can't be taken on its own merits
Apple also needs to open osx to all pc's as well.
As it they get bigger then M$ they they may be forced to.
If that's all there is to the accusation, then Apple deserve kudos - in this one isolated instance - for forcing wider access to the works. Exclusive is the antithetis of the purpose of copyrights.
If you were blocking sigs, you wouldn't have to read this.
Just from a quick google search on itunes music market share:
According to Wikipedia, as of 2006 Stevie said iTunes had 88% of the market for downloadable music
According to Cnet, that percentage was 70% in 2009.
Okay so Apple appears to have market dominance in downloadable music. Confirm monopoly stamp.
Now, from the article:
"But people briefed on the inquiries also said investigators had asked in particular about recent allegations that Apple used its dominant market position to persuade music labels to refuse to give the online retailer Amazon.com exclusive access to music about to be released."
So... Amazon got first and only dibs to specific songs, thus restricting competition, and Apple is using monopoly power to tell music distributors not to do that?
*brain explodes*
I'm sure I'm going to sniff some RIAA lobbiest involvement in this once I reassemble my head.
"All great wisdom is contained in .signature files"
I miss lala.com. oh wait, its still there for a few days. If I do the same thing lala did, will Apple buy me out and shut it down?
Anybody wanna tell me again how lockdown is bad for business?
“He’s not deformed, he’s just drunk!”
It's an inquiry, NOT an investigation. An inquiry may or may not lead to an investigation.
cat
Wait, I thought you didn't use Apple products. So how does it affect you?
... and then they built the supercollider.
Soooo...
Amazon was trying to work a deal where it got to sell mp3s earlier than Apple? Isn't that anti-competitive too?
Now Apple is being investigated for being anti-competitive to a competitors anti-competitiveness.
Isn't that just competition?
So now its uncompetitive for Apple to complain about other companies trying to gain an unfair advantage. Amazon's program gave Amazon a monopoly since they would be the only ones selling the tracks early. I can only imagine what a sh*t storm Amazon would throw if Borders was able to sell select books a week before them or anyone else. Personally I feel all retail exclusivity agreements should be illegal. Including Cell phones and album/tracks. The only stuff that should be "available only at wal-mart" is bad taste and bad judgment.
...as this is an anti-trust investigation against App£e and has nothing to do with Microsoft.
Please try to stay on topic, thanks.
Gentoo Linux - another day, another USE flag.
As this is how conspiracy theories start, when people not familiar with anti-trust investigations in the USA fail to understand how things work in this country.
(caveat - I have owned and worked for MSFT and owned Apple - not holding either stock at the moment)
-- Tigger warning: This post may contain tiggers! --
It affects me because despite being an honest, CD-buying music lover who laughs at the fools who pay good money for lossy downloads, I still suffer the ramifications of DRM which companies like Apple fully back.
And on a wider issue, it supports the distribution of "pick and mix sweety" music because a minority of people who call themselves music fans haven't got the patience or enough time in their day to research their music properly and *SIT DOWN AND LISTEN TO A GOOD ALBUM* (of which, despite opinions to the contrary, there are many thousands if you look beyond the cheap plasticized music thrown at you in marketing and over-hype).
This in turn ultimately means that proper musicians who *DO* have the capability of putting together albums that are good from start to finish will be forced out of making music because it will be much cheaper for record companies to catapult some talentless moistened bint to the public's attention, despite her only skill being the ability to wiggle her backside at a video camera.
Consequently the music I love so dearly will be destroyed and that's why it affects me.
Gentoo Linux - another day, another USE flag.
because they cut us out and favored the publishers.
As for their music policy, I bet the arguments over only a 30 cent spike were not as heated as many suspect, frankly I would not doubt Apple welcomed it.
* Winners compare their achievements to their goals, losers compare theirs to that of others.
It's interesting/ironic how Apple's marketing tactics and fanbase are oddly similar to the non-hammer-throwing crowd in this: http://www.youtube.com/watch?v=OYecfV3ubP8
apple app store lock in and it's censorship is there now!
Firstly, try to learn some English so you can write coherent sentences. Secondly, yes, the Apple "app store" censors and filters applications that Apple sells to users of Apple products. What's illegal about that? Wal-Mart isn't obligated to sell any particular brand of products. Any retail store can choose what they sell and what they don't. Why should the app store be any different?
... and then they built the supercollider.
I still suffer the ramifications of DRM which companies like Apple fully back.
You mean, the DRM that Apple actively campaigned against? That's an odd definition of "fully back."
And on a wider issue, it supports the distribution of "pick and mix sweety" music because a minority of people who call themselves music fans haven't got the patience or enough time in their day to research their music properly and *SIT DOWN AND LISTEN TO A GOOD ALBUM* (of which, despite opinions to the contrary, there are many thousands if you look beyond the cheap plasticized music thrown at you in marketing and over-hype).
Fuck the hell off. You can easily buy full albums from iTunes. And contrary to your belief, there are plenty of artists who you wouldn't want to buy the full album, but might like to buy just a track or two. I thought consumer choice was good?
How is Apple stopping artists from releasing good, coherent albums?
This in turn ultimately means that proper musicians who *DO* have the capability of putting together albums that are good from start to finish will be forced out of making music because it will be much cheaper for record companies to catapult some talentless moistened bint to the public's attention, despite her only skill being the ability to wiggle her backside at a video camera.
Sounds more like you are describing the 1990s MTV music video scene, when people had less choice in their music distribution, and were spoon-fed music by the TV and Clear Channel radio stations. Good thing that era is over.
Consequently the music I love so dearly will be destroyed and that's why it affects me.
Apple is destroying good music? This is the most ludicrous argument I've ever heard, particularly because we have never before had such a wide choice in great music and albums. Your argument just doesn't hold water. Perhaps you just haven't gotten over your nostalgia for the 60s and 70s, and haven't opened your eyes to all the good music that is around?
If anything distribution models like iTunes make it much easier for smaller/indie more creative artists to find an audience and sell their songs.
... and then they built the supercollider.
You mean, the DRM that Apple actively campaigned against? That's an odd definition of "fully back."
So they campaigned against themselves then? Because originally the only stuff you could buy from them was DRMed music, until the public outcry was so great they were *FORCED* to drop it. Get your facts right.
Fuck the hell off.
Well that's an intelligent response.
You can easily buy full albums from iTunes.
Why would I want to do that? I can buy CDs for the same price or cheaper, have nice lossless music and rip them myself to whatever format I want - and have an automatic backup in a nice plastic case I can store on a shelf.
How is Apple stopping artists from releasing good, coherent albums?
It's contributing to the demise of proper music by allowing music to be treated like "pick & mix sweeties". Yes, I'm a complete and utter music snob, it's my prime hobby and if you don't have the patience to sit down, relax and enjoy a really good piece of music then stay away from it and go find something else to do with your time.
And contrary to your belief, there are plenty of artists who you wouldn't want to buy the full album, but might like to buy just a track or two. I thought consumer choice was good?
And one of my favourite bands and probably the biggest rock band in the world currently, AC/DC, does not allow their music to be sold on iTunes.
Plus I don't consider £10 to be an unreasonable price to pay for a music CD I may have been enjoying know for 3 or more decades. It follows from that logic that I don't mind paying £5 for a CD on which only half the tracks are good. But most of my CD albums are great because I do my research well and only buy music from artists who are generally creative enough to be able to put together a good album.
Sounds more like you are describing the 1990s MTV music video scene, when people had less choice in their music distribution, and were spoon-fed music by the TV and Clear Channel radio stations. Good thing that era is over.
Agree totally with you. I've probably seen a total of about 5 minutes of MTV in my entire lifespan - as far as I'm concerned, the only justification for music video is the filming of live concerts for later viewing. Otherwise, it's a mechanism to distract the viewer from the music itself being utterly manufactured plasticized tripe.
However, that era is not over because there are now more channels pumping out trashy music videos.
Apple is destroying good music?
Contributing to the destruction, yes.
This is the most ludicrous argument I've ever heard, particularly because we have never before had such a wide choice in great music and albums. Your argument just doesn't hold water.
Agreed, there's a huge wealth of great music CDs out there, a lot of stuff being remastered and a lot of old forgotten classics being re-released. I could not be happier with the job the record companies are doing bringing some great music to me at really good prices.
Perhaps you just haven't gotten over your nostalgia for the 60s and 70s, and haven't opened your eyes to all the good music that is around?
I find it astounding that you're able to make that incorrect assumption of my listening habits based on what I've said so far. For your information, I listen mainly to rock & blues music from the 50s to the present day - I also enjoy electronic music and some classical stuff as well, my tastes are quite wide.
If anything distribution models like iTunes make it much easier for smaller/indie more creative artists to find an audience and sell their songs.
I own an iPod Touch my wife gave to me when she upgraded to an iPhone but I've only ever put on it the stuff I rip from my own CDs. I have glanced in the iTune
Gentoo Linux - another day, another USE flag.
So they campaigned against themselves then? Because originally the only stuff you could buy from them was DRMed music, until the public outcry was so great they were *FORCED* to drop it. Get your facts right.
No, get your facts right. The music labels required Apple to implement DRM as a condition of selling music in the first place. Apple did not want it to begin with. But they had no choice, as without DRM, the labels would not give them a license to sell music online.
Once Apple had gained enough marketshare and power, Jobs asked the labels to sell the music without DRM. It had nothing to do with public outcry.
Why would I want to do that? I can buy CDs for the same price or cheaper, have nice lossless music and rip them myself to whatever format I want - and have an automatic backup in a nice plastic case I can store on a shelf.
Good for you. You have consumer choice, yay! This goes directly against your argument that somehow Apple has destroyed albums and good music.
It's contributing to the demise of proper music by allowing music to be treated like "pick & mix sweeties". Yes, I'm a complete and utter music snob, it's my prime hobby and if you don't have the patience to sit down, relax and enjoy a really good piece of music then stay away from it and go find something else to do with your time.
So, the only valid form of musical expression is the album?
I've got a news-flash for you: there was once this thing called "the single" - it was a small record with one track on each side. The music industry thrived on it for a long time. Apple didn't invent it.
And one of my favourite bands and probably the biggest rock band in the world currently, AC/DC, does not allow their music to be sold on iTunes.
But AC/DC is one of the few bands big and successful enough to be able to do that and survive financially. In any case, it doesn't bolster your argument about albums, because AC/DC songs stand alone very well, and their albums aren't generally "concept" albums in the vein of Pink Floyd, The Beatles or David Bowie. Plenty of radio stations play single AC/DC tracks without playing the whole album.
it's not like AC/DC are starving for money, but if they released on iTunes, they would probably make even more money.
However, that era is not over because there are now more channels pumping out trashy music videos.
But they are increasingly irrelevant because of things like Youtube and iTunes.
Contributing to the destruction, yes.
This is the same bogus argument we've seen for hundreds of years. The printing press is destroying the manuscript. The typewriter is destroying handwriting. Photography is destroying painting. The VCR is destroying TV. The CD is killing music. DVD is killing the cinema.
People keep making these stupid arguments, yet art keeps evolving and adapting.
I have glanced in the iTunes store on occasions, even though I will never pay for a music download, but I didn't get the impression that it was selling much in the way of indie music - it seems to be full of exactly the same plastic trash that I see on the supermarket shelves to be honest.
You haven't looked very far, obviously.
Jamendo, Spotify and Last FM all seem to be doing a much better job of bringing indie music to the masses than the iTunes store does
That doesn't make much sense, because those services aren't widely used by the masses, but iTunes is. And iTunes gives decent profits to indie bands who use it.
... and then they built the supercollider.
No, get your facts right. The music labels required Apple to implement DRM as a condition of selling music in the first place. Apple did not want it to begin with. But they had no choice, as without DRM, the labels would not give them a license to sell music online.
Oh, I see. So Amazon and much smaller download sites were able to avoid selling DRM music in the first place but *BIG BAD APPLE* was coerced...
Once Apple had gained enough marketshare and power, Jobs asked the labels to sell the music without DRM. It had nothing to do with public outcry.
But Amazon started out selling non-DRM music when they started with zero market share. Sorry, your explanation doesn't wash.
Good for you. You have consumer choice, yay! This goes directly against your argument that somehow Apple has destroyed albums and good music.
I didn't say "destroyed", I said "destroying"...
But AC/DC is one of the few bands big and successful enough to be able to do that and survive financially. In any case, it doesn't bolster your argument about albums, because AC/DC songs stand alone very well, and their albums aren't generally "concept" albums in the vein of Pink Floyd, The Beatles or David Bowie. Plenty of radio stations play single AC/DC tracks without playing the whole album.
But I've heard individual Pink Floyd, Beatles and Bowie songs played on the radio also.
it's not like AC/DC are starving for money, but if they released on iTunes, they would probably make even more money.
The explanation given by AC/DC is that they prefer to be thought of as an "album" band and believe that's what their fans want also. Yes, they are probably big enough to have that much control over their music.
This is the same bogus argument we've seen for hundreds of years. The printing press is destroying the manuscript. The typewriter is destroying handwriting. Photography is destroying painting. The VCR is destroying TV. The CD is killing music. DVD is killing the cinema.
But some of that is true to a degree! The legibility of handwriting has decreased as people do everything on keyboards now... people who couldn't paint a picture are able to pick up a camera and take great photos... Traditional TV has been changed by the advent of being able to record and watch programs when you want to... Cinema attendances have stayed roughly constant but haven't grown as much as they would have done without DVD...
The only one I disagree with is "CD is killing music" because I don't think anyone ever said that - they said "Home taping is killing music".
You haven't looked very far, obviously.
I have checked quite a few indie albums actually because I use Amazon's preview service to listen to bits of a CD before I buy it - but that's only there some of the time and I think Apple and iTunes have around the same availability for downloadable music. But I accept I'm no expert because I don't (and won't) buy download music.
Gentoo Linux - another day, another USE flag.
Oh, I see. So Amazon and much smaller download sites were able to avoid selling DRM music in the first place but *BIG BAD APPLE* was coerced...
Get your facts straight. Amazon wasn't selling MP3s until September 2007. The iTunes Music Store opened in April 2003. Apple started selling DRM-free tracks in April 2007.
As for the "much smaller download sites," how many of them were selling tracks from the major labels DRM-free? Oh, that's right, none of them were.
But Amazon started out selling non-DRM music when they started with zero market share. Sorry, your explanation doesn't wash.
Except they only did it after Apple's appeal to the music industry to remove DRM.
I didn't say "destroyed", I said "destroying"...
Yet you have no evidence for this. Not only do you have no evidence, but no rational argument for it.
But I've heard individual Pink Floyd, Beatles and Bowie songs played on the radio also.
Which makes your argument bunk, because that has been going on for a long time before iTunes.
The explanation given by AC/DC is that they prefer to be thought of as an "album" band and believe that's what their fans want also.
That might be what they prefer to think, but it's total bullshit.
But some of that is true to a degree! The legibility of handwriting has decreased as people do everything on keyboards now... people who couldn't paint a picture are able to pick up a camera and take great photos... Traditional TV has been changed by the advent of being able to record and watch programs when you want to... Cinema attendances have stayed roughly constant but haven't grown as much as they would have done without DVD...
And all of those changes are mostly for the better.
The only one I disagree with is "CD is killing music" because I don't think anyone ever said that - they said "Home taping is killing music".
Nope, plenty of people said that - because CDs sound to "clinical" and not "warm" enough, and they don't have great album cover artwork.
I have checked quite a few indie albums actually because I use Amazon's preview service to listen to bits of a CD before I buy it - but that's only there some of the time
I think you'll find that there are a lot more of them on iTunes than Amazon.
... and then they built the supercollider.
Ya know, cause I don't recall the words "trust" and "Apple" being mixed much. Apple doesn't trust anyone who isn't part of their narrowly focused ecosphere. Oh, wait . . . they mean trust as in corporations as a public good. Blurg.
I scream. You scream. I assume that means we're both acquainted with the problem. We proceed.
I still would like to see the full write up for the investigation because we do not know exactly what the agreement is. But as it stand and with the comments that have been made, the point has been made. I also am sure that there are contracts that are signed at the beginning of employment that you can not transfer any trade secretes to any other employer. So what would the purpose of this agreement be between these companies. Thanks for the feed back.
Anonymous comments are as pathetic as the anonymous "sources" that contaminate gutless journalism from the New York Time
so, regulation is bullying, is this the deduction we are supposed to gleam from this ? and, its bad ?
who is going to keep the corporations in check then ? fairies ? corporations themselves ? alan greenspan, the father of that church has something to say about it :
In Congressional testimony on October 23, 2008, Greenspan acknowledged that he was "partially" wrong in opposing regulation and stated "Those of us who have looked to the self-interest of lending institutions to protect shareholder's equity — myself especially — are in a state of shocked disbelief."[37] Referring to his free-market ideology, Greenspan said: “I have found a flaw. I don’t know how significant or permanent it is. But I have been very distressed by that fact.” Rep. Henry Waxman (D-CA) then pressed him to clarify his words. “In other words, you found that your view of the world, your ideology, was not right, it was not working,” Waxman said. “Absolutely, precisely,” Greenspan replied. “You know, that’s precisely the reason I was shocked, because I have been going for 40 years or more with very considerable evidence that it was working exceptionally well.”[65] Greenspan admitted fault[66] in opposing regulation of derivatives and acknowledged that financial institutions didn't protect shareholders and investments as well as he expected.
http://en.wikipedia.org/wiki/Alan_Greenspan
also, the article misses, but this is one of the sentences he spent during the testimony : "I cant understand why corporations didnt regulate themselves"
so, timothy, are you still selling that 'regulation bully' shit to us, despite the father of that church repented himself ? or have i mistaken the tone there ?
Read radical news here
Get your facts straight. Amazon wasn't selling MP3s until September 2007. The iTunes Music Store opened in April 2003. Apple started selling DRM-free tracks in April 2007.
What other inference is to be taken from your statement other than Apple fully supported DRM until such time as popular opinion and Amazon's entry into downloadable music *FORCED* them to move to a non-DRM format.
As for the "much smaller download sites," how many of them were selling tracks from the major labels DRM-free? Oh, that's right, none of them were.
Irrelevant statement - they were selling DRM-free music, it doesn't matter what label it came from.
Except they only did it after Apple's appeal to the music industry to remove DRM.
Crap. People hate DRM. Amazon started selling DRM-free music. If Apple hadn't removed DRM and *pleaded* with the music industry to let them sell DRM-free music, they would have lost out to Amazon. Purely a financial decision on Apple's part.
Yet you have no evidence for this. Not only do you have no evidence, but no rational argument for it.
I don't need to provide evidence for informed opinion. Deal with it.
That might be what they prefer to think, but it's total bullshit.
Yet you have no evidence for this. Not only do you have no evidence, but no rational argument for it. It works both ways.
And all of those changes are mostly for the better.
In your opinion, yet I'm supposed to provide you with evidence when I express an opinion. So how does that work?
Nope, plenty of people said that - because CDs sound to "clinical" and not "warm" enough, and they don't have great album cover artwork.
Where's your evidence? And if CDs sound clinical then so do digital downloads, possibly even more so due to lossy compression. So your point is what precisely?
I think you'll find that there are a lot more of them on iTunes than Amazon.
I have never found them. Therefore you need to provide evidence that I can. Otherwise I refute your statement.
Gentoo Linux - another day, another USE flag.
Large market share != monopoly.
Nothing stops people from buying the same songs they can get through iTunes from other sellers at comparable prices. And as the Apple-haters keep pointing out, there are plenty of cheaper mp3 players available. So you should be able to have a similar experience listening to the same songs for less money.
What other inference is to be taken from your statement other than Apple fully supported DRM until such time as popular opinion and Amazon's entry into downloadable music *FORCED* them to move to a non-DRM format.
Are you completely insane? Apple offered DRM-free tracks before Amazon did. So, how is it logically possible that apple offering DRM-free tracks was caused by Amazon?
... and then they built the supercollider.