Monday, May 3, 2010

Apple Gets DoJ, FTC Antitrust Attention

The Department of Justice and Federal Trade Commission reportedly are discussing which of the watchdog agencies 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 apparently are concerned the policy harms competition by forcing programmers to choose between developing apps that can run only on Apple devices, compared to platform-neutral versions.

The apparent interest shows that Apple has gotten big enough now to come under the typical scrutiny dominant firms always face.

The inquiry does not mean that there will be a full-blown investigation, only that there is some level of concern. Now that Apple's equity value ($237.6 billion) is bigger than Wal-Mart's ($201.7 billion), such scrutiny now will become an on-going concern for Apple, which will henceforth have to consider antitrust implications as part of its strategy.

That isn't to suggest Apple will face any immediate restriction of its freedom of movement. But that day is coming.

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