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[Reuters] Regulators mull antitrust look at Apple: source

Discussion in 'BBS Hangout' started by raj87, May 4, 2010.

  1. raj87

    raj87 Member

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    Certainly it is safe to conclude that Apple has overreached, no?

    http://www.reuters.com/article/idUSTRE6425JE20100504

    (Reuters) - Regulators are considering an inquiry into whether Apple Inc violates antitrust law by requiring that its programing tools be used to write applications for the iPad and iPhone, a source familiar with the matter said on Monday.

    The news comes amidst a high-profile dustup between Apple and Adobe Systems Inc, which makes the widely used Flash software to provide video and build games.

    Although Flash is nearly ubiquitous on the Internet, Apple calls it a balky battery hog and Apple Chief Executive Steve Jobs will not allow Flash on the iPhone or iPad, or as a tool to build apps on those devices.

    Apple has sold more than 50 million iPhones since its debut in 2007, and 1 million iPads since its April 3 debut. The devices' popularity means extra scrutiny about every Apple move related to the smartphone platform.

    Both the Federal Trade Commission and the Justice Department enforce U.S. antitrust law, and no decision has been made on which may take the probe on Apple, said the source, who spoke privately for business reasons.

    The New York Post first reported regulators' interest in Apple's policy. The paper reported that the two agencies were locked in negotiations over which would handle the inquiry, and a decision was expected shortly.

    "What they're (Apple) doing is clearly anticompetitive ... They want one superhighway and they're the tollkeeper on that superhighway," said David Balto, a former FTC policy director.

    Apple, Adobe and the Justice Department declined to comment. The FTC did not respond to a request for a comment.

    Apple has recently come under scrutiny from U.S. regulators for other reasons. Under pressure from the FTC, Google CEO Eric Schmidt stepped down from Apple's board of directors last year.

    TECHNOLOGY WAR

    After months of sniping at one another, the feud between Apple and Adobe broke into the open last week, when Jobs published an open letter where he slammed Flash as unsuitable for mobile devices.

    Jobs called Flash "closed and proprietary" because Adobe controls the technology -- charges that have also been levied at Apple over the iPhone platform, which is also used for the iPad.

    Apple has prohibited software developers from using Flash

    -- and other programing languages -- to build apps for its newest iPhone platform, so these companies must use Apple-approved tools and custom-build their programs, which adds extra cost and work.

    Apple said allowing third-party tools would result in "sub-standard" apps. But critics say the company is abusing its position.

    "For us and the whole developers community, it really locks us into a single platform," said Michael Chang, chief executive of mobile ad network Greystripe, of Apple's rules.

    Chang said a basic iPhone app might cost $75,000 to build on Flash, and a few thousand dollars more to convert it to work on Google Inc's Android mobile platform. But with the new restrictions, a developer must spend another $75,000 to build the app from the ground up for a non-Apple platform.

    "For a small or medium-sized company, it becomes a real financial issue, and that's how it becomes anticompetitive," he said.

    The iPhone has generated huge interest from app developers, who have created more than 200,000 programs, or apps, for the platform. Developers get 70 percent of the revenue they earn, while Apple takes 30 percent.

    One developer, who spoke on the condition of anonymity, said Apple's new app development rules were just "incredibly broad. The fact that you can't use any other tools to build your app is just ridiculous."

    But he acknowledged that apps built using Apple's tool look and run better than those built with third-party technology.

    Simon Buckingham of the app blog Appitalism argued that developers could write for the Apple platform and other platforms easily using a WebKit open source browser standard.

    "What they're (Apple critics) trying to do is make a mountain out of a molehill," he said.

    (Reporting by Gabriel Madway, additional reporting by Diane Bartz in Washington; Editing by Steve Orlofsky, Leslie Gevirtz)

    TechnologyMedia
     
  2. Depressio

    Depressio Member

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    Want to develop for the largest mobile platform in the market? Great to have you! However, you must develop using our proprietary tools which make it VERY difficult to develop for the competitor platforms as well... but hey, we're not stopping you from spending the time there, too! (just really, really discouraging it with our gigantic machine gun of market power)

    If you can't tell, as a software developer, I despise this sort of behavior and regulation from Apple.
     
  3. Air Langhi

    Air Langhi Contributing Member

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    I am pretty sure symbian is the largest smartphone market. I hate xcode and objective c.

    I think objective c is like 30 years old there is a reason no one other then apple uses it.

    Lets just throw objects and hope someone catches it and you won't find out if it works or not until you run it.
     
  4. Qball

    Qball Member

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    Why don't developers work on apps for android or mobile windows? It's not like devs don't have a choice. If the iPhone OS was the only mobile o/s out there for non-business use, then I could see a case.
     
  5. Depressio

    Depressio Member

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    Market share, quite simply.

    [​IMG]

    Android and iPhone OS both have easy-to-use markets. Their apps are easy to buy/download/shop, thus they are the dominant sellers for apps in the market. As you can see, Android is a smaller portion of the market than iPhone, so you lose profit by developing on a less-used platform. It's the same reason many things exist on Windows-based computers, but not Linux-based or Mac-based. I'm not sure about Windows Mobile (or anything else), though, but I haven't heard much about apps being popular for those platforms.

    While iPhone OS isn't the only one out there, it's the dominant player in the app market and most developers go there first because of it. Some don't, but most do. Apple's business strategy to choke the competition won't work if other operating systems become dominant, but their business strategy is specifically formulated to help avoid that.

    Imagine there's an app called Awesome. It's the coolest thing since sliced bread. The developer sells it for $3 a download. On the iPhone app store, he might sell 1.5 million of 'em for $4.5 million in revenue. On the Android market, he would sell about 900k of 'em for $2.7 million in revenue. Obviously, it makes more sense to develop it for the iPhone and port it to Android later.

    Person A thinks Awesome is amazing and wants to buy a smartphone that can run it. Currently, it's only on the iPhone market, so they buy an iPhone. Apple's market share and dominance increases.

    If Apple did not have these sort of c**kblocking restrictions on developers, a generic platform tool could be used to develop Awesome for both iPhone and Android at the same time. The developers revenues increase, more people get Awesome. However, now Person A gets to choose between Android and iPhone. This is how the market should be, IMO. More money goes to the developer of app, more competition for the smartphones.
     
  6. Rocket River

    Rocket River Member

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    Playing Devil's advocate
    Why should Apple give a d*mn about the developer's profits or the customer's choice?

    Rocket River
     
  7. REEKO_HTOWN

    REEKO_HTOWN I'm Rich Biiiiaaatch!

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    Apple created a platform that made unemployed developers into millionaires almost over night.

    They should be kissing Apples ass. If they want a more open system that uses flash then tell to try their luck with Android or Symbian.

    the reason why the iphone/ipad is so successful is because of the apps right? The apps wouldn't be stable enough without the guidelines built by apple.
     
  8. Depressio

    Depressio Member

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    Because without the developers (say, they retreat to Android because they can develop apps for it and other mobile devices sans iPhone OS), there isn't much appeal to the iPhone. If all the good apps are on Android, why would anyone get an iPhones?

    Apple needs the app developers.
     
  9. Depressio

    Depressio Member

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    That's a fallacy. Unstable apps are made by bad developers, not by strenuous guidelines. The best Android apps are just as stable as the best iPhone apps. Android allows for bad developers to develop bad apps because it's open, but if an app is bad, don't download it.
     
  10. REEKO_HTOWN

    REEKO_HTOWN I'm Rich Biiiiaaatch!

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    Don't download it? that's the reason why people trust the apple app store 10X more than the android market. They know that the Apps on the app store have been approved and work fine on the device.

    You need to realize that the people spending the large sums of money aren't like you and me. They like simple and had to deal with freezes, glithces, resets.

    If you don't think there is a big problem with apps using flash then you don't have enough experience with flash.

    I'm non-iphone user BTW. rocking an N900.
     
  11. Depressio

    Depressio Member

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    I've downloaded a ton... well over $100 in apps over the two months I've had my Android phone. I've downloaded bad apps, but I blame myself because I didn't research them thoroughly. If you think the Android market is fraught with apps that do nothing but crash, you should try using it first.

    Our application is flash-based (or will be) at my company. I have plenty of experience with Flash, and I know its pitfalls. This is not the reason behind and has nothing to do with Apple's stringent requisities regarding application development, however.
     
  12. Qball

    Qball Member

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    Exactly but app devs don't need Apple.

    Like I said, it may be bad for app devs who want to make more money. But does that equate to Apple breaking antitrust laws. It's similar to MS with IE. I never understood why MS including free IE with Windows was considered monopolistic.
     
  13. Depressio

    Depressio Member

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    Obviously I'm biased since I am a developer and have worked with mobile platforms. Is Apple breaking antitrust laws? Beats me. I still think it's a stupid restriction that hurts the people who help their platform be on top.
     
  14. rhadamanthus

    rhadamanthus Member

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    Apple (and S. Jobs) have become even more douchey as of late than before. I love my macs, but some of this stuff is annoying to the point of disgust.
     
  15. REEKO_HTOWN

    REEKO_HTOWN I'm Rich Biiiiaaatch!

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    I've never had a problem with any app I've DL'd from apple. I've run into 2 bad apps that I downloaded from the andriod store in the last year for my dads mytouch. I guess I'm dumb for thinking Google would protect me :rolleyes:


    I wish the best for you and your endeavor but you are betting on a dying horse. If Google chopped flash from youtube that should tell you a change is a comin'.

    It's ease of development is great but it's a major resource hog that just needs to go away and die.
     
  16. raj87

    raj87 Member

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    Absolutely. I just finished reviewing the account of the Apple sponsored raid of Gizmodo.com blog writer Jason Chen. The extreme measures Apple had partaken in the name of secrecy, are reaching Scientology levels.
     
  17. Cowboy_Bebop

    Cowboy_Bebop Member

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    So tell me. What's is out there to replace Flash at the moment? Steve Jobs is full of **** right at the moment. It's all about money for him right now. Until a new platform that's going to replace Flash but right now there's seems to be nothing on the rise. HTML5? Tell me about it went it actually coming out. Steve Jobs is a dick and he wants control of everything to his advantage and Flash is standing in his way.
     
  18. Depressio

    Depressio Member

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    Flash-based web applications are perfectly fine. Poorly developed flash-based applications are bad. Google is teamed up with Adobe right now, and Android 2.2 will have Flash support, so that should tell you Flash is fine.

    Flash is also more efficient than HTML/JavaScript for web applications, too.

    Methinks you're giving Flash a bad rap because: (a) it's rampant throughout the Internet and because of that popularity, the risk of crappy flash implementations is high, and (b) you don't fully understand it.
     
  19. Cowboy_Bebop

    Cowboy_Bebop Member

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    Even though I don't like Flash. I used to blame alot on Flash but I think it's more on the issue with the browsers. I've never had any crashes from Flash. Maybe I have awhile back. But for the some reasons video start to stuttered/freezed for a sec on Firefox after a long hrs of viewing videos from Flash base, to Silverlight, Quicktime and ect. But using Google Chrome I don't recall getting that same affect or maybe I haven't use Chrome long enough to have the same problem.
     
  20. thegary

    thegary Member

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    why does anyone care about apple's measly 15% market share? developers must be one stupid bunch of people. if i were one of those guys i'd build apps for symbian and get rich, wheeeeeeeeeeeeeeee!
     

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