Codebreaker

Justice and FTC looking into Apple’s new policy

John Moe Feb 18, 2011

The Wall Street Journal reports that the government is very interested in Apple’s new policy pertaining to publishers and app developers. It’s nothing that’s developed into a formal inquiry or investigation just yet but may in time. The European Union is also closely monitoring the situation, according to a spokesperson. At issue is whether the policy is anti-competitive. The policy requires a 30% cut of all sales from within an app, it requires that the price of anything for sale within an app is equal to or less than the price anywhere else, and it makes it impossible to buy anywhere else BUT the app once you’re IN the app. Competitors are furious with Apple, of course, and some are speculating that the 30% cut they’re demanding is so excessive that the EU will come down hard on Apple. But this particular marketplace is so new that governments might have a hard time determining what a fair rate is.

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