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EU Plans To Make Apple, Adobe and Others Open Up
FlorianMueller writes "After pursuing Microsoft and Intel, European Commission Vice-President Neelie Kroes is now preparing an initiative that could have an even greater impact on the IT industry: a European interoperability law that will affect not only companies found dominant in a market but all 'significant' players. In a recent interview, Mrs. Kroes mentioned Apple. Nokia, RIM and Adobe would be other examples. All significant market players would have to provide access to interfaces and data formats, with pricing constraints considered 'likely' by the commissioner. Her objective: 'Any kind of IT product should be able to communicate with any type of service in the future.' The process may take a few years, but key decisions on the substance of the bill may already be made later this year."
The EU can't formally legislate on what companies are allowed to do in the US market, but in practical terms, we're talking about a global market for IT products and (especially) Internet-based services. If vendors wanted to apply a different set of openness and interoperability standards in the US than in the EU, they would have to make a lot of efforts to keep the markets separated. They can do it, such as by refusing connections from certain sets of IP addresses, but it would be a major hassle. If many vendors did so, lawmakers in the US would also take a closer look and might consider a similar initiative to benefit customers in their own country.
Concerning Microsoft, the new law isn't even needed for them because they were already subjected to two antitrust proceedings in the EU on the grounds of being found dominant. More importantly, I'm not aware of them treating the US market any differently concerning interoperability with Samba than they treat the EU, even though it was only a European ruling.
The biggest benefit of the envisioned new EU law is that similar rules would also have to be respected by companies who may just not be close enough to a monopolist so that antitrust law can deal with them, but who are powerful enough (such as Apple, Adobe etc.) that it's a problem if they get away with too closed an approach. I don't mean to blame those companies for simply trying to maximize shareholder value or for adhering to certain closed philosophies -- but if antitrust law can't change their behavior, a new instrument is needed.
When government fucks with free markets, the customer loses, always.
Well, except in the case of energy regulation, every state that has deregulated has instantly had massive price spikes (or are these good for the consumer?)... and insurance where the companies kick you out as soon as you file claims unless regulated.
The US government usually asks the market players to regulate themselves and hopes that works (think of movie ratings). It is only after the players show they have no interest in a fair market that it gets regulated.
It's hilarious how many see this as an "attack on free market".
Let me run a few facts down through your skulls:
1. There is no free market for IT goods referred to in the statement. The market that exists is heavily controlled and regulated, essentially being a monopoly market on per-product basis, or interconnected market where vendor uses monopoly control over one aspect of the market to openly destroy freeness in another market.
2. Neelie Kroes is probably the most pro-free market person you will find in EU. It's more of her life's philosophy then just a law enforcement on some level.
3. Suggestions include OPENING the CLOSED MARKET, to make it... that's right, more OPEN!
So do share, in what way is this "evil EU abusing US companies by closing free market"? I can see this being "good EU abusing evil US companies who like to close market to competition by forcing them to actually compete", but to actually claim the exact opposite, you have to either be ignorant, stupid, or have a deep vested interest in status quo.