The Orange View (on hiatus) Because Apple is great but it isn't perfect

17Feb/11Off

Apple subscription plan gets antitrust scrutiny

In perhaps the least surprising news of the day, the Wall Street Journal just broke the news that antitrust regulators at the Justice Department and Federal Trade Commission are probing the terms of Apple's new subscription program.

Banning apps from linking to external sites "sounds like a pretty aggressive position," said Eric Goldman, director of Santa Clara University's High Tech Law Institute. "It seems like that's purely in the interests of Apple trying to restrict people doing transactions they don't get a cut from."

Apple's condition that its own customers should get the best deal available from media companies could also attract scrutiny. Such conditions, sometimes known as "most favored nation" clauses, can be deemed anticompetitive if they distort pricing.

-WSJ, Feb. 17, 2011

Posted by Aaron Pressman

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