CNBC’s Goldman: Apple under antitrust scrutiny? Spare me

invisibleSHIELD case for iPad“Unlike Reagan and Bush, and even Clinton for that matter, in President Obama’s administration, Apple faces an increasingly activist, regulatory climate,” Jim Goldman writes for CNBC. “A victim of timing and circumstance, had Apple come of age during another administration, at another time, we probably wouldn’t be having this discussion. Instead, the confluence of digital media, innovation, the consumer’s rabid appetite for all things Apple, Steve Jobs’ brush with death, and what appears to be his ‘making-up-for-lost-time/don’t-just-beat-but-destroy-the-competition’ are all sliding Apple under the microscopic lens of federal regulators. Just as there’s nothing wrong with monopolies so long as you don’t abuse them, there’s nothing wrong with a little federal scrutiny to keep companies honest as long as it doesn’t turn into a witch-hunt.”

“Which brings me to the latest flap about Apple, Adobe and reports that Apple may have run afoul of anti-trust law. If I’m to understand this, developers are angry that Apple prevents them from developing cross-platform apps by refusing to allow them to use Adobe’s Flash software,” Goldman writes.

Goldman writes, “Developers are arguing and the Feds are apparently examining whether this is an abuse of Apple’s power. Spare me. This is Apple’s marketplace-Apple’s platform. And if developer’s want to develop for the App Store, and the iPad and the iPhone and the iPod, they have to play by Apple’s rules. Some developers complain that they have to go out of their way to develop one app for Apple, and then a different version for everyone else. Too bad. Walmart sets the rules for products sold in its store. Same with Barnes & Noble. Costco. If companies don’t like it, they can sell their wares across the street. But they won’t, because they can’t ignore the Apple marketplace.”

Much more in the full article here.

[Thanks to MacDailyNews Reader “Lurker_PC” for the heads up.]

46 Comments

  1. “Some developers complain that they have to go out of their way to develop one app for Apple.”

    I don’t think any developers are complaining (unless they are in Adobe’s pocket).
    The only one complaining is Adobe. Wha! We want to sell developers our tools. Apple is being mean to us because our tools won’t create the best apps for their devices. Whaaaa!

    Grow up adobe. The era of Flash is over! Get with the program.

  2. @breeze
    Get rid of the ‘as usual’ bit and I would you say, you got it too. Jim Goldman, lest a few of us may forget, just a few months ago fancied a bit of anti-Apple dance because he was ‘duped’ by his ‘internal source’ that all was well w.r.t Steve Jobs’ health.

    I’d say, if anything, Mr. Goldman is dancing his humble way back.

  3. @krquet:

    Goldman has been right about Apple 80% of the time over the last 5 years. His closest competition has been right maybe 50% of the time, and the vast majority have never had a clue. He’s the best there is in his field when it comes to Apple. Nobody gets it right every time.

  4. @krquet

    I’d much rather have someone like Mr. Goldman who seems to honestly call them as he sees them, and has the courage to change his mind and see (and think) different, over writers like Thurrott or Dvorak, whose objective – other than hitmongering – seems to be rather obscure.

  5. krquet:

    Goldman has long been a guy that uses heathy reason and fact. He’s knowledgeable and has the dignity and perspective required of a responsible journalist. He’s always stood his ground and mostly backed Apple and fought the incompetent analysts and yellow journalists that ripped it with gossip and innuendo, while providing solid fact and statistics based on historical track records. Maybe from time to time he doesn’t side entirely with Apple and gets thrown off by misleading research, but he’s never afraid to “eat his words” and admit it.

    Everybody’s shit smells, but Goldman does get Apple and its’ intrinsic value to the market place, investors, and consumers.

    It’s refreshing to see a real journalist still at work.

  6. @ericdano
    “Yup. This is another waste of time and money for the Government.”

    Perhaps you are misdirecting your scorn.

    I still have not seen one shred of evidence that anyone in the gummint has any interest in pursuing an anti-trust case against Apple.

    At this time, we can point only to some anti-Apple hacks spewing anti-Apple FUD and invoking the name of the government in doing so.

    When a governing body deserves blame, blame it.
    Until then, look very carefully at the source of this “information”.

  7. The likely focus of this scrutiny will be if the software market for the iPod/iPad/iPhone platform constitutes monopoly and if Apple had put barriers to entry into that market using their own monopoly position. The criteria required to meet the monopoly definition are fairly precise and in this case, rather high; you simply cannot use Psystar argument that ‘Macintosh’ is a separate market space from the rest of desktop computing market. Conversely, iPhone/iPod/iPad market cannot be taken separately from the rest of mobile market (which runs on Android, WebOS, Symbian, WinMob, Palm OS, etc). All these have same kind of bullet-point lists of features, and software developers build applications for all of them (more-or-less). What excuse could any jurist possibly have to segment this market further by defining iPod/iPad/iPhone market a separate and unique one, in order to declare Apple a monopolist in that market and therefore abuser of that monopoly?

    This seems to be just unfortunate timing. With the massive abuses of market freedom and lack of regulation by financial institutions, there is no surprise that many are expecting government to keep a hawk’s eye on every single large corporation (and Apple is third largest in the world, based on market value). As we all know here, it will be a waste of time in Apple’s case.

  8. Jim Goldman, I like the slant you put on this. Can we do something to keep them “across the street”? Maybe some Federal stimulus money or a Fannie Mae or Freddie Mac loan to keep them there until those phones shrivel up and die. Or, they can hold off until the iPad killers shows up!

  9. As regards Goldman’s “feeling” about Adobe being behind this:

    The latest “victims” of ninovation are begrudging and looking for revenge, Apple’s foes are all lining up and trying to put pressure on Apple in any way they can and it’s easy to panic a nervous angry public….Let’s start up the gossip and innuendo machines, they’ve always “worked well” let’s go get Apple- Not.

    Lest anyone forget: Prior inquires into Apple’s business practices yielded nothing, the doomsday predictions of iPhone and other “expensive” products dying a miserable death during the nations biggest depression, yielded record earnings quarter after quarter and took the international markets by storm…iPad was born despite the distractions, because Apple is focused, determined and able to innovate in the highest of realms.

    Here comes another wave of crap from the miserable nincompoops – instead of proving that they can rise to the occasion and create exciting compelling devices and computers, these lame copy cat dead beats that know only how to copy and sell shit would rather sell third grade yellow journalism and negative propaganda….

    It would be soooooooo refreshing to see all other competitors actually take the honorable, high road, but that would require a secret ingredient: Substance and prowess…

  10. I don’t think Apple has done anything wrong. And this might seem like an unpopular opinion on this site, but I also don’t have a problem with the feds asking a few questions — so long as its not a huge time and money draining inconvenience or witch hunt.

    Adobe and these developers are clearly wrong, and I’m confident that’s what any federal scrutiny will reveal.

    I think some people are so averse to any kind of scrutiny in any industry they just assume the feds are going to come in and muck everything up. If they do that, I’ll be among the loudest to complain.

    Nothing I’ve seen makes me think that’s happened or necessarily will happen. So lighten up until you have a real reason to be so angry.

  11. As a Mac and iPhone developer, Cocoa and Objective-C are my tools of choice. I have no interest in Adobe’s mediocre cross-platform tools.

    But I also realize that Eric Holder wants to cut out Steve Jobs’ liver and eat it with a fork.

    Fortunately, Steve has a secret weapon in the White House: Rahm Emanuel. Rahm knows how to handle Holder, and knock him down as needed.

  12. I side with DOJ ‘looking’ at this. There is nothing to find, but that’s their job. If, in fact they are looking at this (scant evidence that they are), hopefully rationality and reason will prevail. Apple’s reasons for the Flash ban are quite reasonable, and unless you are a frustrated Flash developer they make perfect sense. I doubt that the DOJ has many Flash developers in their midst, so they ought to come to the quick decision that this is simply a matter of sour grapes. So far as I can see, there are other other 3rd party tools still being used in conjunction with Apple’s iPhone SDK to build apps. Apple simply doesn’t want apps dumbed down for the iPhone just so some developer has easier path to sell the same app to Android users. I can’t see anything wrong with that.

    If Apple isn’t allowed to control their own platform, why should any company attempt to build the next better platform? An action against Apple would be a dagger in the heart of entrepreneurial innovation.

  13. “Unlike Reagan and Bush, and even Clinton for that matter, in President Obama’s administration, Apple faces an increasingly activist, regulatory climate,”

    Right-wing drivel.

  14. @lurker… BINGO!

    @NHL
    Yep, NHL got it right.

    This is a bunch of BS and FUD coming from… who know at this point? The government has it’s hands full with serious issues. Wounded egos don’t count for much.

    Adobe? Nokia? HTC? MS? A Consortium of Apple Haters? Who knows?

  15. @x

    Spare us the knuckle-dragging, paranoid crap.

    Obama could be more centrist. he’s 1/2 black so that makes him a terrorist, socialist, communist, fascist, non-citizen? Take your pick, mix and match or select them all!

    Even Nixon would be considered a liberal today.

    As for Carter? Bad timing for him more than anything, poor bastard. The end of Vietnam (all those war industry contracts lost), the space program winding down (more lost tech contracts) and oil embargoes. No one could have gone through that unscathed.

    It didn’t help when Reagan/Bush1 cut a deal with the Ayatollah to hold the hostages until AFTER the 1980 election.

  16. The way I see it, the only other people complaining besides Adobe are the designers and programmers who have hung their hat on Flash. They see this as a threat to their livelihood, they know their days are numbered, and they’re either too scared or too lazy to learn anything else. The evolve or die mantra applies to them as well as Adobe.

  17. I think the only way Apple would be in the wrong is if they said “if you want to develop for Apple you must sign an agreement saying you can not develop for android” for example…

    That clearly would be abuse of marketplace power – however that is not what is happening

  18. Uh, Carter was, and still is a moron. And a bitter one at that. But the current guy is doing a good job of trying to top him.

    And, Nixon would have been considered a liberal? In what alternative universe would that be? It’s the other way around. Many of the “liberal” Democrats back then would have been considered “conservative” by today’s standards.

    I don’t like to see the comment sections deteriorate into political commentary, but geez, let’s not re-write history.

  19. We are in the process of turning the Gulf into a lifeless cesspool. Our federal deficit will make our country bankrupt in a few years. Corporations are about to take over our elections. Our Congress is so disfunctional that they couldn’t pass a law stating that Tuesday comes after Monday. And on and on and on.

    Yet, our government has time to consider going after the most innovative company in America that is absolutely loved by the great majority of its customers.

    What is wrong with this picture?

  20. Yeah, as soon as MS allows Sony games to be played on the Xbox.

    Adobe (and I’m sure it is) has really lost face in this battle. Instead of accepting the truth and moving forward to fix their lazy a$$’s, they want to litigate their stupidity. They’ve been to busy cashing checks and telling everyone how great they are instead of looking forward.

    At this time, I can’t easily get by without their product but I am slowly leaning my way off the Adobe crack.

  21. Even if iPod touch/iPad/iPhone constitutes a Monopoly, which I doubt very much, how the Hell is Apple restricting access to iPhone OS if Apple gives away the tools to write Apps for iPhone OS?

    Adobe, forget about Flash, get your head out of your ass and work on 64 bit CS for Mac. That’s where the money is in the future.

  22. @NHL
    You are right on target. I haven’t seen any independent verification of the initial Post article. Maybe I missed it.

    @An Optimist

    “But I also realize that Eric Holder wants to cut out Steve Jobs’ liver and eat it with a fork.

    Fortunately, Steve has a secret weapon in the White House: Rahm Emanuel. Rahm knows how to handle Holder, and knock him down as needed.”

    What is the basis of these assertions?

  23. Let’s see how this hurts developers. The free Xcode is required to develop apps for the leading mobileOS and costs nothing. Adobe CS5 is required to develop Flash based apps for the also-rans and beleaguered, and costs $750 or more.

    Yea, I can see how free development tools are really hurting developers.

  24. I have a great idea:

    Adobe give away CDs with their Flash playing crap for the iPhone, iPod Touch and iPad along with Jail Breaking software for each device. Then you can run all the Flash garbage you want!

    Golly gee, thanks Adobe for freeing us from the confines of Apple.

    But don’t go sobbing to Apple when your battery life declines by an order of magnitude and your iDevice gets infected with Flash malware. Thank Adobe for that BS. Start up a class action lawsuit! It could not be more obvious why Apple want no part of Adobe’s Flash crapware.

    There will be no antitrust action against Apple. But there will be customer revolt against Adobe. It’s already happening.

  25. What about the extortion from CONcast & TimeWarner where you have to pay (& support) truckloads of bullshit channels you don’t want to get a handfull you do want?
    Apple’s iTunes Store is in direct competition with the Cable/Satellite crooks & not a peep is forthcoming.

  26. This is Apple’s world. Get rid of the terrorist Adobe with their terror bomb, Flash which always crashes the system. Would the US government tolerate Osama bin Ladin’s terrorist group to roam unimpeded throughout the United States in order to create havoc?

  27. Gee I’m so happy to live in a world where Apple can get away with this blatant anti-competitive behavior and exhibit such control over their devices and so many people think this its OK.

    This isn’t about the Flash ban, its about a cross-compiler ban !

    In Adobe’s case, once compiled from a Flash source to an iPhone App, there is nothing of “Flash” remaining and it is a native iPhone app. So why does Apple have a problem with this ? Because the apps can easily be compiled to other platforms too. OMG no !
    They are just being giant assholes.

  28. Video game developers already have encountered this issue. For the most part, they just have to suck it up and develop for different platforms if they want to sell their games. Adobe doesn’t have a leg to stand on. If the Feds investigate Apple, they’ll have to investigate Sony, Nintendo and Microsoft for the exact same violations.

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