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May 3, 2010May 24, 2020

Apple Could Face Antitrust Investigation

Apple’s recent move to prohibit developers from creating applications using code from MonoTouch, Titanium, Unity and Adobe Flash has the Federal Trade Commission and Department of Justice’s Antitrust Division sitting up and paying attention. One of the two agencies is expected to begin an antitrust investigation into Apple’s policy change.

The investigation will likely look at Apple’s recent change to section 3.3.1 in its iPhone Software Development Kit. One of the two agencies may subpoena Apple for more information on why it forced developers to use Apple-only approved software, published reports said.

Adobe Systems has made its opposition against Apple’s policy change very clear. Adobe said the move by Apple is just another one of Apple’s attempts to lock developers and consumers into using Apple’s own proprietary technology. The recent changes to Apple’s licensing agreement prove that, according to Adobe spokesperson, Holly Campbell.

FTC spokesperson, Mitchell Katz, would not provide any information on an investigation into Apple nor would he confirm or deny an investigation was underway.

Aside from a complaint from a competitor, there are many ways in which a federal antitrust investigation can get underway, according to Ilan Barzilay, antitrust attorney and partner at Seyfarth Shaw.

“The FTC or DOJ can begin investigations on their own based on news reports or general scuttlebutt but consumer complaints are another way they can get started,” Barzilay said.

Consumers at the Core

Apple defended its changes to the SDK saying it will benefit consumers. Allowing third-party layers of software such as Flash will result in “sub-standard apps and hinders the enhancement and progress of the platform,” CEO Steve Jobs wrote in a posted letter on the change.

Jobs went on to say that if the change was not made, developers would become dependent on third-party tools and would only be able to make enhancements to their applications…

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