“Apple’s reported plan to bundle unlimited iTunes music store access with iPods could bring antitrust allegations similar to those faced by Microsoft for its bundling of Internet Explorer with Windows, according to David Pakman, CEO of iTunes competitor eMusic,” Eliot Van Buskirk blogs for Wired.
“‘They’re basically saying, ‘Let’s give a piece of every iPod sale to the record labels in exchange for bundling in all the music you can eat with every iPod” said Pakman,” Van Buskirk reports. “‘That’s classic Sherman Antitrust Act behavior. It’s called tying, and it’s where a company with a monopoly position in one market uses that monopoly position unfairly to compete in another.'”
“Pakman says Apple’s possible bundling of iTunes with the iPod represents the same type of behavior that brought the Justice Department down on Microsoft. The company’s bundling of Internet Explorer with Windows ‘killed the browser market, it killed Netscape. And (Microsoft) ran into all sorts of trouble in the U.S. and in Europe,’ Pakman said,” Van Buskirk reports.
“EMusic, which has 15 percent of the digital music market, would play the Netscape role in this scenario — as would Amazon.com, RealNetworks, Napster, Best Buy, Target, Circuit City, Wal-Mart and other music retailers, which could react by bringing an antitrust case against Apple,” Van Buskirk reports.
More in the full article here.
We can hear the sweat dripping off his brow.