NY Post reports that Apple may be under antitrust scrutiny over app store policies

Reply Mon 3 May, 2010 02:29 pm
An antitrust app
Apple may be in the eye of regulatory storm

After years of being the little guy who used Washington to fend off Goliaths like Microsoft, Apple CEO Steve Jobs is about to learn what life is like when the shoe's on the other foot.
According to a person familiar with the matter, the Department of Justice and Federal Trade Commission are locked in negotiations over which of the watchdogs will begin an antitrust inquiry into Apple's new policy of requiring software developers who devise applications for devices such as the iPhone and iPad to use only Apple's programming tools.
Regulators, this person said, are days away from making a decision about which agency will launch the inquiry. It will focus on whether the policy, which took effect last month, kills competition by forcing programmers to choose between developing apps that can run only on Apple gizmos or come up with apps that are platform neutral, and can be used on a variety of operating systems, such as those from rivals Google, Microsoft and Research In Motion.

The threat of Apple being the subject of an investigation would be a remarkable turnabout for a company that has long seen itself as being outside the establishment, and one that has egged on antitrust officials to blunt the momentum of larger rivals.
However, thanks to the popularity of the iPod and iPhone, Apple is having a tough time continuing to play the role of David fighting against Goliath. Indeed, its market cap of $237.6 billion exceeds that of the world's largest retailer, Wal-Mart, whose market cap is $201.7 billion.
Apple put its might on full display last week when Jobs wrote a scathing explanation for why Adobe's Flash programming language was unfit to be used on Apple products. The day his missive was released, Adobe shares fell 2 percent.
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