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Apple unlikely to face antitrust suit, say analysts

updated 02:55 pm EDT, Fri June 11, 2010

Company may now be under regular scrutiny

Apple will probably dodge antitrust suits from the Department of Justice and/or the Federal Trade Commission, argue Stifel Nicolaus analysts Rebecca Arbogast and George Askew. The US government is considering whether Apple is being anti-competitive in several areas, but primarily in terms of blocking Google/AdMob from from app advertising, and preventing developers from employing cross-compilers, namely those based on Flash. Apple may have legitimate reasons for both policies, the analysts suggest.

Regarding app ads, Apple's excuse is effectively one of conflict of interest, as Google not only sells ads but produces its own mobile platform, Android. Apple CEO Steve Jobs has claimed that cross-compilers can result in sub-par apps. The question, say Arbogast and Askew, is "whether exclusionary policies are justified as robust competition, or cross a line into anticompetitive conduct."

Apple could indeed be in trouble if there are any company documents showing an anti-competitive agenda. This is what undid Microsoft in an earlier government investigation, the analysts remark. Even if Apple is absolved, it may nevertheless be under regular federal scrutiny from now on, and increase the threat of action with each controversial step it takes.







by MacNN Staff

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Comments

  1. Spacemoose

    Joined: Dec 1969

    +4

    They aren't forbidding AdMob!

    They are forbidding AdMob from harvesting analytics information about "the user or device".

    AdMob is completely free to display ads.

  1. charlituna

    Joined: Dec 1969

    -1

    Given the singular source

    of the New York Post for 9 of the 10 'investigations' and the Financial Times for this last one, its easy to question the claims. Where are all the other papers to confirm the stories with their own sources. I'm sure the NYT, WSJ etc have insiders as well.

    Perhaps they didn't confirm the stories because there's nothing to actually confirm

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