Filed under: Analysis / Opinion, Apple Corporate, iPod Family, iTunes
Apple hit with antitrust lawsuit
Information Week is reporting that Apple has been accused of monopolizing the online music industry in an antitrust lawsuit. Specifically, the suit states that Apple has placed "...unneeded and unjustifiable technological restrictions on its most popular products in an effort to restrict consumer choice, and to restrain what little remains of its competition in the digital music markets."Here we go again with "restricting consumer choice." First of all, no one is being forced to use iTunes or an iPod. But, what if you want to use iTunes with a player other than an iPod? Or, what if you want to use an iPod but not the iTunes Store?
Mac users can choose from a number of players that work with iTunes, including the Nomad Jukebox, SonicBLUE Rio and Nakamichi SoundSpace 2. It's true that music purchased from iTunes will not play on these devices (unless it's from the growing library of DRM-free songs), but Mp3 files and unprotected AAC files will.
For iPod users looking beyond the iTunes Store, there's the Amazon Mp3 Store. In some ways, in fact, the Amazon Store is more appealing than iTunes: all of their tracks are DRM-free and many are cheaper.
Of course these aren't perfect solutions. To get the most out of iTunes and an iPod, one must use them in conjunction. However, this suit feels like sour grapes: punishing Apple for their success. There's a difference between dominating a market and preventing others from succeeding. So far, no one has created a more successful alternative and that's not Apple's fault.
Thanks, Dave.
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Reader Comments (Page 1 of 3)
Eideard said 3:36PM on 1-04-2008
Lawyers - as a category - have achieved a reputation as slime even more despicable than Kongress. This suit is one more example reinforcing that perception.
I wonder what might happen to some of these kreeps if they were ever persuaded to eke out an honest living?
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Al said 3:49PM on 1-04-2008
What do lawyers have anything to do with this? Sure, it's a lawsuit, but the lawyers aren't the ones who have a problem with Apple!
Fernando said 3:57PM on 1-04-2008
Don't be a hater, lawyers are only doing their jobs.
LD said 3:57PM on 1-04-2008
Does iTunes work with the Zune? Because that would be funny.
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DJCarbon43 said 4:05PM on 1-04-2008
Heh,
I'm not even a lawyer, but I'm sure I could get a summary dismissal of this frivolous suit. Seriously, what idiot of a lawyer brought this case?
Dominating a marketplace through superior offerings ≠ (does not equal) monopolistic tactics. C'mon. This isnt even worthy of law school 101.
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Luigi193 said 4:15PM on 1-04-2008
I don't think it was the lawyers idea...
punkassjim said 4:31PM on 1-04-2008
Taking the case was the lawyer's prerogative. So was turning it down. He or she failed.
DJCarbon43 said 4:49PM on 1-04-2008
Yep. I should've been more clear on that. I didnt think it was the lawyer's idea...although I know plenty who would do something like that (Jack Thompson ring a bell?).
As Jim said, the lawyer is deluding his client by taking a case like this. The client will be stuck with a huge legal bill, and no case. We need reform in this area more than anywhere else in the legal system.
Johnny said 4:13PM on 1-04-2008
These people obviously just don't know what they're doing. I find that a lot of people fit into that category. Just today at work, a lady was asking how to move her daughter's library from her mac at work to her daughter's PC. She was convinced that the only way was to buy some $100 software she'd heard about that apparently can do that over the internet or something. So I copied her music onto a CD (as she really didn't have much) and told her she could just copy the music into her PC's iTunes.
That example isn't exactly the kind of thing these people are talking about, but it just goes to show that even though it isn't obvious, iTunes is actually quite open and versatile. The only thing that isn't open is iTMS DRMed files which is no different than any other DRM. Fortunately, DRM is becoming much less standard and there are plenty of options for getting non-DRM music that will work with iTunes or any media player.
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Ugh. said 4:18PM on 1-04-2008
Maybe this is why Apple stock went down 11 dollars!?!?!
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Jrock said 4:23PM on 1-04-2008
No... That would be because of the broader market sell off, especially in the Tech Sector...
jonathan ober said 4:26PM on 1-04-2008
if my Wii doesn't let me use an Xbox disc in it...can I sue the video game companies? My VCR didn't let me play betamax tapes! Stupid lawsuit.
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dhaasgob said 4:35PM on 1-04-2008
Can we could sue every Blu-Ray and HDDVD maker (besides those that make hybrid ones) for making players that doesn't play the other type? That would be fun!
Yeah, this lawsuit isn't even worth the paper it used up.
Duscrom said 1:49AM on 1-05-2008
Would you sue Best Buy if their music didn't play in your mac? Would you not sue Wal-Mart if Their Movies only played in a PS3? the iTunes store is going after more and more content.. exclusive content including movies and TV shows. And You can't do anything with that media unless you have an iPod or AppleTV.
By the way, Yes, there are Supirior products out there. Better MP3 player, better Video players, that are offered for cheaper. But if I want legally downloaded movies.. or that copy of Meet The Robinsons i paid $14.99 for to play on the go, I have to get an iPod. I can't play it on my PSP with it's larger, 16x9 screen. Nor can I stream it to my PS3, or Xbox 360.
Fanboys need to quit denying that Apple is using their status to gain more content, and using that content to squash compitition. Apple is becoming a content retailer, that's what iTunes is.. and if Best Buy should have to offer content that is open, then so should iTunes.
Anthony said 6:11AM on 1-05-2008
Duscrom, How can you accuse Apple of using DRM to squash competition when the music & movie industry required DRM from the start?
Dman said 9:06AM on 1-05-2008
Duscrom said...
...if I want legally downloaded movies.. or that copy of Meet The Robinsons i paid $14.99 for to play on the go, I have to get an iPod. I can't play it on my PSP with it's larger, 16x9 screen. Nor can I stream it to my PS3, or Xbox 360.
You're argument is stupid. Sony & PSP has its own video format, Sony screwed up and it is no longer a viable format for profit. I can't pull/stream video and movie downloads from my Xbox 360 or Tivo Amazon Box purchases to play on my Mac, iPod or PSP. Apple controls its DRM because unlike the companies you are defending, Apple has kept the same rules applied to its DRM, there aren't levels or tiers of DRM like the flawed PlayforSure DRM you are defending. Also, MPAA and RIAA don't want you transferring your DVDs and CDs to you computer and mp3 players, why they suddenly want you to able to transfer video and music from iTunes...? Oh right, DRM.
punkassjim said 4:28PM on 1-04-2008
Feels less like sour grapes, and more like a complete lack of understanding of antitrust law and the common/legal practices in free market competition.
http://blogs.cnet.com/8301-13509_1-9840352-20.html
The Macalope handled this story quite nicely.
Nobody bitches about the "we don't like their stuff, so we'll make our own and make it better" business model until the business in question has plenty of money or market share. Proprietary formats will always battle, and there will always be a clear winner. No one has yet brought a convincing argument for any of the accusations in this suit, and I doubt anyone ever will.
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smacklin said 4:40PM on 1-04-2008
The fact that Apple has a growing library of DRM Free tracks pretty well kills this suit.
There is also the fact that there wouldn't be an iTunes store without DRM and a fairly closed system because the record companies never would have signed up for that.
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Ozmotear said 4:39PM on 1-04-2008
The issue here is that the Vendor is telling the Customer what devices are allowed to be used, and pretty much forcing that decision on them.
Cassette Tapes = Any Brand Cassette Player
CD = Any Brand CD Player
Mp3 = Any Brand Mp3 Player
iTunes Music = Apple iPod only (exception iTunes Plus)
What if the DVD rental buisness started doing this?
Imagine having to buy a DVD player from each Blockbuster/Netflix in order to rent their movies.
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bob_c_b said 5:56PM on 1-04-2008
If we follow your example then there is an issue with the Xbox 360 not playing Wii games. Sorry, this example fails hard. To be a monopoly Apple would have to be actively trying to stifle competition, not simply burying the competition by having a superior product.