# Apple says subscriptions. Feds say antitrust: report



## kb7uen Gene (Mar 13, 2009)

Go get em!

Gene

http://www.csmonitor.com/Innovation/Horizons/2011/0218/Apple-says-subscriptions.-Feds-say-antitrust-report


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## planet_janet (Feb 23, 2010)

I think they will have a hard time proving antitrust.  I am not a fan of Apple's policy, but Apple isn't preventing anyone from selling their products however they want outside of the app store.


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## The Hooded Claw (Oct 12, 2009)

http://www.tuaw.com/2011/02/21/android-may-save-the-day-for-apples-ipad-subscription-policy-in/

It is far from official or final, but this article suggests preliminary hints are that the European Union may view the numerous Android tablets coming out as providing consumer alternatives that may make anti trust tough to bring against Apple.

Since the EU regulators are usually tougher than US regulators, especially when an American company is under scrutiny, that may be good news for Apple in the US as well as Europe.


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## mooshie78 (Jul 15, 2010)

Yeah, hard to see the anti-trust angle as a business can run their store however they want.

The best hope is for Android and other platforms to rise and sell better and force Apple to change their policies to keep up.  Or at the least to give us who don't like the practices hardware and OS's that are as good or better than Apples and have similarly robust app stores.

The problem is thus far the competition has dropped the ball on those fronts.  Well on the phone front hardware is probably as good or better.  But UI and app store isn't since Android is so fragmented with different OS's out at the same times, different hardware makers having their own UIs etc.  It's going to take a Google or Microsoft or HP making their own kick ass OS and UI and only having one version at a time on all hardware etc. for someone to come along and rival the Apple app store.  

Hopefully that will happen over the next couple of years.  I really want a tablet, but not one as locked and controlled as the iPad and it's app store.  And preferably with an OS that's closer to a PC/Mac than a phone OS.


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## MrPLD (Sep 23, 2010)

It's a bit how the linux market has been... fragmented to hell but finally getting pulled together by some heavyweights like Ubuntu.  As a developer, having a single consistent target to develop to is vastly more appealing than trying to cope with a shotgun spray of options, especially when it comes to support issues.


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## geko29 (Dec 23, 2008)

planet_janet said:


> I think they will have a hard time proving antitrust. I am not a fan of Apple's policy, but Apple isn't preventing anyone from selling their products however they want outside of the app store.


Actually, they are. They specify that any products, services, or subscriptions sold through IAP (and that's the only way to do it going forward) must be the lowest prices available anywhere. This precludes vendors from offering alternative pricing, coupons, promotions, or package deals (with other vendors), unless the exact same offer is made in-app. It's a classic example of using market power in one venue to control pricing in another.


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## mooshie78 (Jul 15, 2010)

I don't think they say people can't sell apps for cheaper on the Android marketplace etc.

Just that an app can't have links to jump to safari to buy say an e-book etc. where Apple doesn't get their 30% cut.  That sucks, but isn't an anti-trust issue as one can just skip the iPhone/iPad and go with another platform with similar apps etc.

If you're right and they are saying they can't have things cost more in the iPhone/iPad app than it does in say the Android app, then yeah, that's probably an anti-trust issue.  But I've not heard that they're doing that anywhere before your post.


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## geko29 (Dec 23, 2008)

mooshie78 said:


> I don't think they say people can't sell apps for cheaper on the Android marketplace etc.


We're not talking about the cost of apps here--nearly every app vendor being penalized gives their app away for free.



mooshie78 said:


> If you're right and they are saying they can't have things cost more in the iPhone/iPad app than it does in say the Android app, then yeah, that's probably an anti-trust issue. But I've not heard that they're doing that anywhere before your post.


I posted the guidelines verbatim in another thread here, but here's the applicable one to this situation:



> 11.13
> Apps can read or play approved content (magazines, newspapers, books, audio, music, video) that is sold outside of the app, for which Apple will not receive any portion of the revenues, *provided that the same content is also offered in the app using IAP at the same price or less than it is offered outside the app*. This applies to both purchased content and subscriptions.


I'm amazed you haven't heard this before. Part or all of the above requirement (copied and pasted from my Apple Developer agreement) has been included in roughly half the news stories I've seen on this.


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## mooshie78 (Jul 15, 2010)

geko29 said:


> I'm amazed you haven't heard this before. Part or all of the above requirement (copied and pasted from my Apple Developer agreement) has been included in roughly half the news stories I've seen on this.


As I read that, what that means is that any content available out of app (e-books etc.) must also be made available in app where apple gets 30% of the sale price. It can still be sold through safari etc. with Apple not getting a cut, but it must also have an in app purchasing option.

That doesn't say anything about a company not being able to sell subsriptions, e-books etc. for cheaper in apps on Android or other platforms. Just that they're can't be a cheaper way to get it into the iPad/iPhone app. Outside the app just means purchases through safari etc. that can then be imported into the iPhone/iPad app, not anything about apps for other platforms. They have no control over that, and can't control developers like that unless they pay them for exclusivity of their app to the iOS.

That still stinks, as it will cost companies like Amazon money as consumers mainly buy in app as it's easier. But its not price fixing or an anti trust issues as app makers can still sell their content (subscriptions, e-books etc.) out of app, and for whatever price they want on other non-iOS platforms.


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## ElaineOK (Jun 5, 2009)

I see this more of a breach of contract issue with Apple changing terms after developers and purchasers relied on the original language interpretation.  My guess is that the reference above to the EU and android tablets has to do with establishing that Apple lacks monopoly power.  Particularly, for e-books (which is what most of us are interested in) that is absolutely clear.  In fact, at least in the US (not up on European markets), it isn't even close.  

Elaine
Norman, OK


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