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iPhone move raises new anti-trust worries
It seems we might have the first anti-trust case over Apple's strict new iPhone regulations.
The US Department of Justice and Federal Trade Commission have been asked to open a probe into the company's recent decision to limit developer's to only Apple-approved programming tools. The two agencies are both said to be considering action against the company on the grounds that the policy is designed to scare developers away from porting to competing platforms.
The move underscores a harsh new reality that Apple might increasingly find itself facing. The success of the iPhone has taken the company from a likable underdog to the likes of Microsoft and Nokia to a bona fide heavyweight in the market, and with all the headaches that come with it. Once an asset, Apple's strict management of its platforms could become a liability should they be viewed as a controlling force in the market. We all remember what happened to Microsoft with its anti-trust woes, and Apple is far more controlling of its platforms than Redmond ever was.
It also reinforces a point I've long been making: that Apple should be among the biggest supporters of the Android platform. When a company is as into vertical integration and tight management of its platforms as Apple is, they need a major rival or three. Just like the MacOS needs a dominant rival in Windows in order to justify Apple's tight management, the iPhone OS needs major opposition to keep the anti-trust watchdogs at bay.
Once the current anti-trust storm clears, the company needs to either open up with its policies (unlikely) or start rooting for Android, Symbian or another smartphone platform to establish itself as a dominant force.
The problem with all this is that Apple *hasn't* become a powerhouse. The raw numbers easily disprove it. Nokia sells 12x as many phones. Even if you stick to smartphones, Apple is behind RIM. In fact, it's running around where Motorola is - and no one is calling for an anti-trust investigation of Motorola's phone section.
The problem is that the press seems completely obsessed with Apple and have generated the impression that it has far more impact than it really does.
This, of course, scares the pants off the other phone makers, who run out and try to copy or one up the iPhone and by doing that, actually reinforces the impression that Apple is really important.
It's a delightfully closed loop - a media echo chamber.
Posted by Jeff Lewis | May 5, 2010 5:03 AM