US Department of Justice to investigate Apple over iTunes
The New York Times is reporting that an "early stage" investigation at the US Department of Justice (DoJ) is looking at whether Apple is using its considerable position in the online music sales business to hinder Amazon's efforts. Specifically, the probe will focus on whether Apple unfairly leveraged iTunes to deny Amazon's MP3 store exclusive access to songs. It's been alleged that Apple threatened to withhold their typical promotional activities from labels who continued to offer exclusives to Amazon. Those songs would still see sales in iTunes, of course, but significantly less without Apple's promotional efforts behind them.
Back in March, Billboard reported that Apple's iTunes team had tried to talk publishers out of participating in Amazon's low-priced, exclusive "Daily Deals" promotions, which often motivated labels to offer Amazon first dibs on major releases at a significant discount. This allegedly prompted Apple to threaten to pull advertising if participation continued. Several labels supposedly relented and abandoned the Amazon deal as a result.
You'll remember that the DoJ also recently began an inquiry into a clause in the iPhone OS 4 SDK that bans the porting of software originally written for Adobe's Flash, Sun's Java or Microsoft's Silverlight/Mono to the iPhone OS. What a mess!
[Hat tip to Ars & Electronista]
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The New York Times is reporting that an "early stage" investigation at the US Department of Justice (DoJ) is looking at whether Apple is...
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This is what that vile scumbag Holder wants to investigate? Not Sestak?
Not muslim terrorists?
of ALL the things they could look into at Apple they choose iTunes?! SERIOUSLY!? iTunes is what changed the face of what downloading music is considered. It used to be all torrents and Napster clones. At least people pay for music on iTunes. Goes to show you how messed up out gov'ts offices are
May 26 2010 at 10:15 PM Report abuse Permalink rate up rate down ReplyIt's the only possible thing you could look at. Nowhere else does Apple have anything close to monopoly power, let alone using that power to stifle competition.
May 28 2010 at 3:14 AM Report abuse Permalink rate up rate down ReplyTrue, but they shouldnt look for trouble just for looking sake, I would hope they have better things to do
May 28 2010 at 7:31 PM Report abuse Permalink rate up rate down ReplySince when is the FTC a part of the DOJ? Unless there's some hidden meaning behind putting up the FTC logo in an article about Apple and the DOJ?
May 26 2010 at 9:56 PM Report abuse Permalink rate up rate down ReplyThey have 26% of the market. How does that justify any anti-trust activity?
May 26 2010 at 3:04 PM Report abuse Permalink rate up rate down ReplyOh the irony! Gates & Ballmer are probably gleefully watching this unfold and now thinking to themselves payback is sweet justice.
If you live long enough, and fast enough, you get to watch history repeat itself over and over and over and over..... the only thing that changes are the victims.
Could not agree with you more. It will be interesting to watch it play out but you cannot use the same strong arm tactics once your the big boy.
May 26 2010 at 3:53 PM Report abuse Permalink rate up rate down ReplyGet the S.H.I.E.L.D. right - DoJ, not FTC.
May 26 2010 at 2:01 PM Report abuse Permalink rate up rate down ReplyI don't really get why Apple needs to do anything regarding Amazon. It's not like Amazon's deals (or the free downloads they give away with basically every purchase) are denting their phenomenal market dominance.
May 26 2010 at 1:54 PM Report abuse Permalink rate up rate down ReplyAmazon, the 900-lb. gorilla of booksellers, wanted special treatment from music publishers. Apple objects, as would any other competitor would in similar circumstances, gets called the villain. Meanwhile, Amazon objects when Apple offers book publishers a more attractive deal for ebook sales, and then plays bully-boy to publishers. What's the difference?
May 26 2010 at 1:52 PM Report abuse Permalink rate up rate down ReplySeems like EVERYBODY want a piece of the Apple Pie now there successful!
May 26 2010 at 1:50 PM Report abuse Permalink rate up rate down ReplyDoesn't seem to present the whole story - at least, from what I've been reading elsewhere. Apple pays its own money to promote in its store. Amazon reportedly had started promoting the Daily Deal on its own, but then requested that the labels kick in on it too. Its one thing to have a store take a loss on something on its own, be it a discounted price or the cost of promotion. Amazon was wanting to run the sale but have the label pay some of the cost of the activity, while the label doesn't offer Apple any kind of promotional reimbursement.
May 26 2010 at 1:46 PM Report abuse Permalink rate up rate down ReplyHot Apps on TUAW
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