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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.
Because it reduces competition. If I work with software at Apple, I'm essentially barred from entering the job market at other similarly-sized corporations in the same field.
If I'm unhappy at Apple for some reason I have to stick with them because the other companies won't hire me, not because I'm not qualified but because of my previous employer.
If this was Burger King don't hiring former McDonalds employees, we wouldn't see the point, but when its software companies its ok?
Taxation is legalized theft, no more, no less.
I'm sorry, this is retarded. Agreements like this amount to indentured servitude for the employees. In my experience, moving from one company to another was the surest way to boost my pay. Had I stayed with the same company for a decade, my merit rises would merely beat inflation. I would also be worth a lot less to a prospective employer due to not having a varied background.
I would like not only these pacts to be outlawed, but non-competes as well. For trade secrets, there's the court of law where trade secret disputes can be adjudicated.
it will become a hamstrung corporate slushy, just like Microsoft did.
All the DOJ did was say "yep MS, you are a monopoly", the damage was already done. Microsoft managed to squash Netscape, BeOS, and all of their established competitors from the '90s.
Other than making MS more subtle in their EEE tactics, the ruling didn't do too much. Microsoft managed to come out on top with the DOJ hearings, yeah they got a stern talking to and some bad PR, but look at post-hearing MS, it was doing remarkably well and not losing marketshare till the disaster of Vista.
Apple has a lot more to fear than MS did. Apple doesn't supply the OS for most of the government's computers, MS does.
Taxation is legalized theft, no more, no less.
They weren't leveraging their dominance against the RIAA, they were leveraging their dominance OF the RIAA against potential competitors.
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.
Which is great and all, except Amazon is already being charged differentially less than Apple in music royalties by the RIAA as a way of intentionally decreasing Apple's market share so they have less influence compared to the RIAA. Amazon is a stalking horse as much as a competitor here.
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"
Reminds of Forest Gump when Forest says he invested in a "fruit" company that turns out to be Apple. If people invested their money into Apple right after that movie came out, they'd be living like Gump themselves right now.
It's just mind-blowing what you could do if you had 20 years of hindsight 20 years ago.
"I like to lick butts!" by MobileTatsu-NJG (#32700246) (Score:5, Informative)
Hold on there, pardner. The trade secrets belong to the company, but the talent belongs to the employees.
Not the mention it was a minor miracle that Steve Jobs got the major labels to sell their music online in the first place.
This is one of the most fascinating things in recent tech/media history to me. I believe the labels' thinking at the time was that this was a test, and experimental roll-out. Because this new-fangled iPod and iTunes was a Mac-only thing at the time, and Macs had a tiny share of the computer market. So, they'd see if it worked. If it failed, no big deal, it's only a few Mac users. But to everybody's surprise, the iPod was insanely successful and Apple made the unprecedented move of releasing iTunes for Windows and adding USB support (early models were Firewire-only).
Basically, what the labels thought was a minor experiment turned into the future of their industry.
... and then they built the supercollider.
Leave Microsoft alone, and go after the real evil... Apple.
Seriously, evil? We neuter words when we use them casually in a way they are not intended. We rail against politicians and marketers for bandying about certain words in the wrong situation while people here on Slashdot call Apple evil! You may not like them; you may not like their products; you may not like their policies; you may not like their procedures but, let's be serious, the company is not evil.
Gawd. "I don't like them" is not the same thing as "evil!"
I know. I know. I must be new here...
Actually, it is not illegal to have a monopoly. Natural monopolies aside, if someone is able to garner enough goodwill and purchasing power to be a monopoly in one area, it's not illegal. The only illegality comes when a monopoly is abused.
Microsoft took their Windows monopoly to put IE on the desktop. There was no need for any third-party browser now, and that desktop monopoly became an web browser monopoly as well, something we all are fighting to this day. IE6 will not die, and IE in general still holds a commanding share of web browser "marketshare".
Apple had a monopoly on selling music on iPods, but Amazon came up and took away that monopoly (because iPods play MP3s). In fact, the closest Apple had was when they were leveraging iPod sales and iTunes - this was why the EU was doing investigations into Apple. Now that Apple has gone DRM free, those concerns disappeared (because Apple sold music that only worked on iPods, thus limiting third party MP3 players from being able to play purchased music).
This case is that Apple is using it's "monopoly" on music sales to limit Amazon's ability to sell music. Namely, by demanding that the music labels cannot give preferential pricing to a third party without offering it on Apple's store as well. If a music label wants to make a track of the week 70 cents on Amazon, it also becomes 70 cents on iTunes.
Which seems bad, but remember that Apple and Amazon are also doing the exact same thing with each other on the ebook market. Apple gave publishers an option they liked better than Amazon's option, so publishers went with Apple, and Amazon relented. Apple's agreement with publishers is they don't give anyone but Apple preferential pricing. Amazon caved and went with the same agency model, and also demands that publishers cannot give preferential pricing to anyone else other than Amazon.
And Amazon's not exactly the innocent party as well - having "dealt with" publishers that refuse to go along with its pricing model by trying to "devalue" books from that publisher, or even worse, not offering to sell the book on its marketplace.
Apple's only real leverage is marketshare, and all it takes is someone to make a better iPod and all that advantage disappears. So Apple may have a monopoly on music sales, but it's far from a certain one and the iPod has to compete with everything else out there. Even music sold on Apple's store isn't locked to an iPod anymore, and modern MP3 players will play it just fine as well (say, Microsoft's Zune).