Earlier today, the U.S. House Judiciary Antitrust Subcommittee completed its ongoing antitrust investigation into the practices of Apple, Facebook, Google, and Amazon, reaching the conclusion that the tech companies are the "kinds of monopolies" last seen in "the era of oil barons and railroad tycoons."
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Apple in a statement to MacRumors said that it strongly disagrees with the conclusions reached in the report in respect to Apple, and that Apple does not have dominant market share in categories where it does business.
We have always said that scrutiny is reasonable and appropriate but we vehemently disagree with the conclusions reached in this staff report with respect to Apple. Our company does not have a dominant market share in any category where we do business. From its beginnings 12 years ago with just 500 apps, we've built the App Store to be a safe and trusted place for users to discover and download apps and a supportive way for developers to create and sell apps globally. Hosting close to two million apps today, the App Store has delivered on that promise and met the highest standards for privacy, security and quality. The App Store has enabled new markets, new services and new products that were unimaginable a dozen years ago, and developers have been primary beneficiaries of this ecosystem. Last year in the United States alone, the App Store facilitated $138 billion in commerce with over 85% of that amount accruing solely to third-party developers. Apple's commission rates are firmly in the mainstream of those charged by other app stores and gaming marketplaces. Competition drives innovation, and innovation has always defined us at Apple. We work tirelessly to deliver the best products to our customers, with safety and privacy at their core, and we will continue to do so.
Apple plans to provide a more in-depth refutation of the allegations levied against the company by the antitrust subcommittee in the near future.
The report lumps Apple, Google, Facebook, and Amazon together and says that the four corporations "share common problems" such as controlling access to markets, charging exorbitant fees, imposing oppressive contract terms, and using their dominant positions to maintain market power by shutting out rivals.
The full 450 page report [PDF] released by the U.S. government featured a number of recommendations for future antitrust laws and practices that will impact Apple if eventually adopted.
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Top Rated Comments
I remember the good old days of just buying software/services anywhere you were able to and install it. I want that back!
Just for starters, Google and Facebook track people’s web activity and use that data for profit. Apple does nothing of the sort, in fact is outspokenly in favor of strong user privacy.
Amazon is by a long way the market leader in online sales, no other company comes close. Google and Facebook are also huge market leaders in their areas of operation.
Apple doesn't dominate any market at all (as this article points out), it simply provides a premium range of products and user experience.
So while it could be argued that the other three companies are “monopolies” in some way, I find it completely misguided and irrational that Apple is being lumped in with them.
Hmmm...I remember those good old days and those days that followed…Of course Apple doesn't agree. they want to force up to 30% of all dollars spent via their devices to them.
I remember the good old days of just buying software/services anywhere you were able to and install it. I want that back!
Let's see, the dwindling software options on the shelves at stores like Fry's Electronics. Less and less new software.
I do remember seeing a surging demand for anti-virus software, too, during that time.
Oh yeah, and 30% is small price compared to having to pay for printing, packaging, delivery and maintaining physical inventory for software.
The PC revolution came to fizzling end
And then the App Store came…
…and breathed new life to the solo entrepreneurial programmer market. A single programmer could actually make money simply by writing code and not have to design a package, have it printed, shipped to a distributer, make business contracts with retailers, and maintain physical inventory (what does all that have to do with programming?).
oh, and what virus on the smartphone platforms?
And now there's at least a dozen apps per topic/subject to choose from and room for competition as each one solves needs and problems differently.
Yeah, this is one techie that does not fondly remember those parts of the good old days.
That being said, I am against Adobe's MONOPOLY and subscription only model on their software :P
Thank you! I've been saying this for years about Target too. I would love to sell my solid hardwood and horsehair toothbrushes direct to consumers in Target stores but every time I try they call security. They claim I could enter into a contract with them, sell them my toothbrushes, and then they'll resell them directly to their customers but then I'll only get $7 per brush when Target sells them for $10. This is absolutely a monopoly! I should be able to sell my brushes for $10 direct. I tried doing that out of my garage but there are far more customers in Target stores (one bored neighbor wandered into my garage but she thought brushing her teeth with fur from a dead horse was "gross"). This is oppression clear and simple, Target customers would really be better off if I could approach walk up to them while they compare prices on socks and preach the virtue of brushing your teeth with pure horsehair.What competition is there for selling iOS apps? Please guide me to all these other stores I can get my software for my iPhone cheaper? ....and before you say it, I don’t own an Android phone and I don’t want to; I spent my $1000 on an iPhone and I had no idea I couldn’t buy my software from anyone but Apple. (Note...this is an example to make a point not my personal predicament)
END THE MONOPOLISTS!!