Adobe complaint prompted U.S DOJ and FTC to consider Apple antitrust investigation

“U.S. antitrust enforcers are considering an investigation of Apple Inc. following a complaint from Adobe Systems Inc., according to people familiar with the matter,” James Rowley and Arik Hesseldahl report for Bloomberg.

MacDailyNews Take: Who knew that The Ingrate Gazoo was also a little whiny rat bastage, too?

Rowley and Hesseldahl continue, “Adobe says Apple is stifling competition by barring developers from using Adobe’s products to create applications for iPhones and iPads, said the people who spoke on condition of anonymity because they aren’t authorized to discuss the case.”

MacDailyNews Take: Adobe’s decision-makers would have been better served had they taken the time to understand what antitrust laws and regulations actually cover.

Rowley and Hesseldahl continue, “The complaint triggered discussions between the Justice Department and the Federal Trade Commission over which agency should review the allegations of anticompetitive behavior, the people said. Neither agency has decided whether it would open an investigation, one person said.”

Full article here.

MacDailyNews Take: Ooh, discussions. And without any decision made to proceed, too. Scaaary!

Ho hum, another excuse to short the sheet out of the stock yet again. We know what the DOJ and FTC are wasting their time and taxpayers’ dollars on, but where’s the SEC? AWOL as usual.

MacDailyNews Note: Note to advertisers: (including those who advertise via third-party ad networks and become, in effect, our advertisers): Your Flash-based ads are no longer reaching the most well-heeled customers online: 50+ million iPhone owners. They’re also not hitting 35+ million iPod touch users or 1+ million brand new iPad users. If you care about reaching people with discretionary income, you might want to consider dumping your flash-based ads and moving to a more open format that people with money and the will to spend it can actually see.

Help kill Adobe’s Flash:
• Ask MarketWatch to offer HTML5 video via the customer support web form here.
• Ask CNBC to offer HTML5 video via the customer support web form here.
• Contact Hulu and ask them to offer HTML5 video via email:
• Ask ESPN360 to offer HTML5 video instead Flash via their feedback page here.
• Join YouTube’s HTML5 beta here.
• On Vimeo, click the “Switch to HTML5 player” link below any video.

By the way, do not buy Adobe’s Photoshop Elements until you have tried Pixelmator’s free 30-day trial. We use Pixelmator daily.

Try Pixelmator's free 30-day trial today!

64 Comments

  1. Let me get this straight. A company whose product is installed on 90+% of Internet connected PC’s, utilized to encode 80+% of web videos, and animates 100% of all annoying web advertising is crying about anti-trust against a company with less than 10% share of the PC market? And they want to use the government to extend and force their proprietary technology in the emerging mobile market with a product that isn’t even available to the general public? Methinks Adobe has their anti-competitive behavior and anti-trust complaints against Apple definitely backwards.

  2. Let’s see how this hurts developers. XCode 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.

  3. I’ve never really been in the camp that believes Apple should buy Adobe, but with all this petty behavior that Adobe is directing at Apple, I’d argue now that Apple should buy them just to end it once and for all. That, or bust out a superior suite of apps.

  4. They have to address complaints. Brings the whole issue into the spotlight. Adobe needs to grow up. Their software is buggy and sucks compared to more stable efficient open advancements. That’s life. Adapt or die.

  5. Half or Adobe’s customers are Mac users. Deny Adobe the upgrade revenue of the CS 5 upgrade. By boycotting it. Write the asshole in charge and let him know that if he trys to hurt Apple he is hurting all Apple customers and that we will cut his tree in half for starters and hurt Adobe even more ln the future.

    Apple users need a PS And illustrator alternative.

    Bring back freehand and give Pixelmator heavy doses of steroids

    Software companies; Isn’t anyone up to the challenge of competing ?and breaking Adobe?

  6. We followed MDN’s advice and picked up to copies of Pixelmator yesterday. Adobe finalllllllyyyyyy brings out their lame Captivate for the Mac…meh. Too little too late with a bloated feature set not meeting eLearning’s real needs. Guess Adobe is spending their R&D;$$$$ on executive media training for whining and engineer training for bloat creation. I feel for the customer support people who have to deliver the message and listen to Adobe’s customers.

  7. Seems like a last ditch effort by Shantanu. I wonder how’s the return on investment from the purchase of Macromedia. That purchase doesn’t look so great now…

  8. Adobe is complaining after they abandoned their mobile platform tools that developers use to create those apps on the iPhone OS platforms. Adobe chooses to be non-competitive non the iPad.

    Adobe = Fail

  9. Adobe was brought to Life by Apple and the Mac and will Die by Apple and the Mac. Yes, I consider the iPhone, iPod touch and iPad just extensions of the Mac and OS 10, for one would not be without the other.

  10. Adobe does not care about Mac desktop customers even if they comprise 50% of its desktop business today, because they know the desktop is dying.

    What Adobe is targeting is a future of Google-style mobile-web where ubiquitous Adobe apps based on their Flex/AIR platform generate the majority of revenue.

    What Adobe needs are 2 things –
    1) Drive down Apple sales (yes, their own major desktop revenue) so the industry does not follow the Apple model.
    2) Scare other mobile platforms into allowing Flash plug-ins with this threat, when it eventually cobble together one.

  11. WAIT a second: Adobe wants the FTC to examine whether or not Apple forces people to use their software to write programs for iPhone/iPad because FLASH can’t be used to develop for that platform. Where, pray tell, is my choice of Flash development environments? Hmmm??? I’m waiting….

    I want the FTC to look into Adobe’s monopoly over their Flash development and distribution channel first.

  12. I want Microsoft investigated for anticompetitive behavior for forcing developers to us DirectX for 3d Graphics instead of Open GL.

    As was told by Microsoft I have to use DirectX for 3d graphics hardware acceleration because Windows was designed to slowdown and not work for hardware acceleration of 3d if I designed and wrote my software to use OpenGL. As I was not going to get locked into Windows and Microsoft with DirectX I dropped development of my software on Windows.

    If anyone should be investigated for anticompetitive antitrust violations it’s Microsoft and Google (Who uses their Ad monopoly to lock out competitors from their Ad Networks. Go to any site that uses Google for Ads. Now find a page on the site that the word iPhone, AT&T;, Droid etc. Note that 9 times out of 10 a Google Nexus One Ad will appear on the page.)

  13. A company with a 5% share if you count the entire cell phone market or 15% share if you only count the smart phone market, is guilty of abusing it’s monopoly?

    STFU! How can 5% or even 15% market share be a Monopoly?

    Apple gives away their products for making iPhone OS Apps. Adobe sells their products for making iPhone OS Apps. Apple sure is maltreating their developers.

    Apple doesn’t restrict you to only Apple products to make iPhone OS Apps. Apple just does not want generic Apps on it’s iPhone OS.

    It’s quality control, not anti-trust. Idiots.

  14. When Adobe’s fears come true and Apple owns 80% of the smart phone market, they can just re-file their real valid complaints again at that time (IF THEY ARE STILL IN BUSINESS)!

    Till then, watch would market share evaporate away under the shine of the Apple!

  15. Adobe is the new Macrostool, in terms of software bloat and inconsistent UI. I’ve put up with the shortcomings and flaws of InDesign and Photoshop for years—hoping the NEXT update/upgrade would address them. Instead, after delay after delay, we are fed more filler. Resource hogs, speed-killers and crash-prone bloat.

    Apple should buy the company and clean house. At least no one would complain about Apple’s prices for software upgrades—Adobe stands alone when it comes to extortion.

    mdn mw: “because” i love you, mamma!

  16. Didn’t Adobe sign partnership deals to distribute Flash (when finally available) on Google/Android, RIM/BlackBerry, Nokia/Symbian, Palm/HP/WebOS, and Microsoft which represents more than 70% of the current smartphone market? Adobe now wants the government to force their Flash monopoly down Apple’s throat.

  17. Unfortunately the one company inclined to compete and destroy Adobe is ironically Microsoft. They have held a sword over their head for years to the effect that do as we say, put us first or we invest heavily in competing with your core products.

    The future however bodes better because the whole iPad environment, and indeed touch orientated tablet computers generally, will indeed allow competitors to get in on the action and compete on a relatively equal basis, as the whole process of re writing those key Adobe products to take advantage of the new input paradigm would be horrendous and probably easier to start afresh. With the key software products Apple already has, with additions and doses of steroids to them and sensible acquisitions if required, Apple above all should be able to offer alternatives aimed specifically at the iPad which will grow with it and adaptable to the desktop if required. I can’t believe that with the present war brewing that particular option isn’t waiting in the wings just in case a desperate Adobe tries to threaten product withdrawals.

  18. I think this is going to be one of Adobe’s biggest strategic mistakes in their history. This can turn around on them and have the regulators and public really look at Adobe’s past and current anti-competitive behavior.

    Adobe acquired and killed PageMaker, FreeHand, GoLive and the Mac version of FrameMaker. I think Adobe should really tread carefully because I know I’m not the only one that has been personally harmed with the elimination of these products. Not mention allowing them to keep their current products priced astronomically and artificially high.

  19. You can build your own suite of applications:

    – Pixelmator
    – Freeway
    – Easy Web Animator
    – Intaglio

    — (others) Acorn, LiveQuartz, Artrage, iWeb, Goldfish, Drawberry, Drawit, Inkscape, Photoline, Lineform, ZeusDraw, Swift 3D, BannerZest, Skitch, Jing, ummmm and Piscass – ugh — LOTS of things out there…

    — (video) – Quicktime, Handbrake, Visualhub, iSquint, Miro Video, Kigo Video, Evom… SOME MANY MORE I HAVE TO STOP HERE

    — Xcode, iPhoneOS4.0,

  20. One can only imagine the kind of outcome Adobe’s CEO expects from this course of action.

    What’s next, members of the Special Olympics will be allowed to compete at the professional level without qualifying?

  21. WOW – nice going Anti-WTF? – agreed here.

    BUT @ acid

    to think the desktop or even a laptop TO DIE… I hope not… I rather enjoy having tools to develop devices or be creative. Without a desktop theres no way of developing for the iPad. And, iPad/iPhone doesn’t have everything I wish to use… though its an amazing device with a wonderful future.

  22. @Big Als MBP

    Well said. It is a terrible circular argument to say that Apple has a dominant market share of … iPhones. Courts reject such arguments automatically–yes, Apple could say that Adobe has a dominant market share of … Flash licensing. The market is that of smart phones (for comparison sakes).

    @ Macdust
    “Yea, I can see how free development tools are really hurting developers.”

    I think MS used a similar argument about Internet Explorer. Predatory pricing is a form of anti-competition and can lead to antitrust charges, provided other factors can be established.

  23. The media description: “…discussions between the Justice Department and the Federal Trade Commission over which agency should review the allegations of anticompetitive behavior…”

    The actual conversation:

    DoJ: Dude, do you know anything about the iPhone development environment?
    FTC: Fscked if I know. Adobe says Apple’s being anti-competitive. There’s gotta be something to it, right?
    DoJ: I guess. So you got this one, right?
    FTC: Hell. No. This one’s all you.
    DoJ: OK – roshambo?

  24. There’s a huge opportunity here for someone who can think big, to create and develop suite of Apps that are harnessed to work together in an integrating framework, that unifies them as modules, into a PS/Illustrator alternative App.

  25. FLASH and all that is FLEX — is far too much for a specific market… ADOBE has had many years to offer their MOBILE deployment software – it that really exists — doing nothing much with all this powerful software for this market.

    Adobe does not understand the MOBILE market place.
    And they do not listen to their CUSTOMER base as ADBOBEs CEO likes to say they do…

    Nor do they show a willingness to attempt to carter to it – by which perhaps a NEW PRODUCT for PC/MAC toward iPhone/iPad/iTouch.

    There was a time when a ALL-IN-ONE application concept of LAYOUT, PHOTOE DITING, VECTOR ILLUSTRATION would be all packaged as one…

    THE LESSON HERE for an all-in-one app — might have been a direction more to do with marketing – however – the old lesson of a person with many skills is less a professional at one of of their skills.
    FLASH is over bloated for the iPHONE market. The video container is not required… development for stores and advertising is also not dependant on Adobes applications.

    Take away all MAC users of ADOBE products – I am not sure that will happen – but IT SURE would make a difference to the future of Adobe. Buying Adobe… no – thats not a good idea – it never was. Is there technologies Apple needs from taking over Adobe? MAybe to OPEN-SOURCE everything?

    Apple competes when it needs to and defends when required too.

    AND it does it with style and class…
    JOBS open letter is an example.

  26. Thanks for your ongoing efforts toward HTML5. You may need to update your note to advertisers to include:

    MacDailyNews Note: Note to advertisers: thanks for the advertising dollars (Fancast) but our iPad and iPhone users can’t watch your videos.

  27. Warren:

    This soup needs slow and special cooking.

    Who would you identify as a candidate that’s capable and able of taking on the creation task of one or two consolidating Apps that would give pro users a reasonable alternative?

  28. How can any of you possible condone Apple’s POV on this ?

    Shame on Apple. What they are doing is highly uncompetitive. Apple has totally crossed the line by disallowing these compliers.

    They are stifling competition and they should not be allowed to enforce this BS.

    By enforcing this, they are making it impossible for anyone to author an app once and cross compile it to different platforms. Basically making it extremely painful or impossible for a company to make their app on multiple platforms.

    Platforms cross-compilers exist for XBOX and PS3 allowing for a game to be authored once and compiled to the target platform.

    Screw Apple big time for this !

  29. The crazy backwards thing is that Adobe is trying to use the DOJ/FTC to extend their Flash monopoly in the emerging mobile market by forcing their proprietary technology down Apple’s throat.

    Time to gather my thoughts and send them off to my Senators and Reps that Adobe’s actions are misguided and a misuse of government resources.

  30. Adobe is upset because they were seeking a monopoly on web video with Flash, and on web development tools with APIs that they thought they could force platforms to adopt. It should be Adobe under investigation here, if it weren’t for Apple pulling the rug out from under them.

  31. Nothing is preventing Adobe from creating Flash for mobile devices; other than their own lack of IQ. And since they have NOT CREATED a mobile version of Flash for ANY mobile product line, their “complaint” borders on being evidence of some serious mental issues. Perhaps the board of directors should insist on a competency test for Shamu instead of wasting our tax payer dollars on a government investigation into anti-trust behavior on Apple’s part towards a product Adobe DOES NOT HAVE AND HAS NEVER MADE.

  32. Two points, one of which is a question to anyone who knows the answer.
    If Apple users make up 40 or 50% of Adobe CS users I can posit something more meaningful. Apple users likely make up 80+ % of people/firms that actually buy the product, for cash…as in money. I suspect 80+ % of PC users/firms so beloved by Adobe, simply steal their CS products. A colleague does it all the time. It’s easy. He downloads whole suites from Adobe (which is cheeky enough) and then uses downloaded cracks which never seem to fail.
    Second: a question. Given Apple’s premier (oops) position in video and music with Final Cut Studio and Logic Studio, why have they never addressed the much larger market for an Image Studio and Web Studio? I mean they have iWeb at the bottom and Web Objects at the top end. And they have Core Image and Core Animation etc and access to OpenGL….. Aren’t these ideal underpinnings upon which to build an outright CS series replacement? NB: notice I didn’t use the word ‘Killer’.!! Any views on Imaging capabilities with Apple’s Core components?

  33. Adobe has treated their Mac customers as second class citizens for a long time now. That strategy has failed and Adobe is in danger of becoming a dinosaur so they blame Apple rather than Adobe’s own shortsightedness.

  34. Who but Adobe would pull this move?

    Yet again:

    When you can’t compete: LITIGATE

    Or in this case: Whine like a little bitch to the good-old-boy system in Washington, DC and save yourself some lawyer fees.

    Adobe are in the dreadfuls. A severe shake up in their pathetic ‘Marketing as Managment’ hell is on the move.

    Let’s watch…

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