Friday, February 18, 2011

Antitrust Issues for Apple's Subscription Service?

The U.S. Justice Department and Federal Trade Commission apparently are looking at Apple's new subscription service as having potential antitrust issues, but the investigation is at an early stage, and might not develop into either a formal investigation or any action against the company, the Wall Street Journal reports.

Apple's terms for the new content subscription service require companies that sell digital subscriptions to content on Apple devices also make it available for sale at the company's iTunes App Store at the best available price.

Apple also would prohibit media companies' apps from linking to stores outside its App Store or from offering better terms to subscribers elsewhere, making it difficult for them to attract buyers to their own sites. Legal experts say some of those rules could pose antitrust problems.

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