[opendtv] Europe may join forces with FTC in Apple probe

  • From: "Manfredi, Albert E" <albert.e.manfredi@xxxxxxxxxx>
  • To: "opendtv@xxxxxxxxxxxxx" <opendtv@xxxxxxxxxxxxx>
  • Date: Thu, 12 Aug 2010 13:23:21 -0500

http://www.rethink-wireless.com/2010/08/11/europe-join-forces-ftc-apple-probe.htm

Europe may join forces with FTC in Apple probe
EC refuses to confirm that its investigation will dovetail with US antitrust 
inquiry
By CAROLINE GABRIEL

Published: 11 August, 2010

The European Commission is reported to be throwing its weight behind a US 
antitrust probe into Apple. Though the EC would not officially comment, 
multiple sources are saying that the European body will team with the US 
Federal Trade Commission (FTC) in its existing investigation of alleged 
anti-competitive practises at the iPhone maker.

The probes focus specifically on Apple's rules for applications on its 
platforms, particularly the effective exclusion of some technologies like Adobe 
Flash. EU action has been expected for some time, in the light of new European 
legislation governing openness between software systems.

However, The New York Post reports that it could take months for the EC to set 
a deadline for its inquiry - and until a date is arranged it cannot officially 
confirm it has any such process underway. This could push the US competition 
regulator's own decision back by about six months. In June, the FTC began 
looking into restrictions in Apple's new iAd mobile advertising platform, and 
its decision to block Flash from the iPhone and iPad by barring third party 
compilers.

Apple updated its licensing agreement in July to limit the data third parties 
could access from its apps, which would prevent Google's AdMob service, a rival 
to iAd, running on Apple devices. This seemed to increase the likelihood of the 
EC getting involved, following the region's adoption of its Digital Agenda, 
which includes clauses on technology interoperability.

Kroes has already fined Microsoft $1.4bn for lack of software openness, and is 
now focusing on whether smartphone vendors comply with new European 
interoperability rules. Kroes recently specifically named Apple's App Store as 
an example of a closed environment. When considering abuse of a market 
position, the Agenda wants to change the standard from 'dominant' to 
'significant' place in a sector. The document states: "Since not all pervasive 
technologies are based on standards the benefits of interoperability risk being 
lost in such areas. The Commission will examine the feasibility of measures 
that could lead significant market players to license interoperability 
information while at the same time promoting innovation and competition."

Kroes explained: "We need to make sure that significant market players cannot 
just choose to deny interoperability with their product. This is particularly 
important in cases where standards don't exist... This is not just about 
Microsoft or any big company like Apple, IBM or Intel. The main challenge is 
that consumers need choice when it comes to software or hardware products."
 
 
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