Earlier this week, Apple unveiled its new App Store subscription plan, and immediately caught flak from journalists, developers, and even some consumers. The policy requires that companies offering subscriptions through the app store offer the same service, at the same price they do elsewhere -- but Apple skims 30-percent off the top for itself. Of course, this could force some developers to choose between keeping prices low to compete with Apple for market share but at a reduction of profit (or even a complete loss of it) or jacking up prices to compensate, which may drive consumers into the arms of Apple outlets like iBooks. To make matters worse, Apple developer guidelines no longer allow for apps to contain links to external sites where goods or content are sold (an obvious but cumbersome loophole that a company like Amazon could have exploited).Now, the FTC and the Justice Department are taking preliminary steps in an investigation of the new program, with the potential for a formal antitrust investigation and lawsuit if the subscription plans are deemed to violate antitrust laws. The fear is that Apple's policy of funneling all content providers' subscriptions and purchases through the iTunes store -- and banning external sites -- would limit competition. Of course, nothing could come of this informal look at the plan. But if you ask us (though, admittedly we're not lawyers and this writer has been accused on more than one occasion of having an anti-Apple bias) it sounds to us like the government might have a case here.
FTC, DOJ Eyeing Apple's Subscription Policy for Antitrust Violations originally appeared on Switched on Fri, 18 Feb 2011 14:50:00 EST. Please see our terms for use of feeds.
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