Apple 'Vehemently Disagrees' With U.S. Tech Company Antitrust Report

[MacRumors]

Earlier today, the U.S. House Judiciary Antitrust Subcommittee completed its ongoing antitrust investigation into the practices of Apple, Facebook, Google, and Amazon, reaching the conclusion that the tech companies are the "kinds of monopolies" last seen in "the era of oil barons and railroad tycoons."

Apple in a statement to MacRumors said that it strongly disagrees with the conclusions reached in the report in respect to Apple, and that Apple does not have dominant market share in categories where it does business.

We have always said that scrutiny is reasonable and appropriate but we vehemently disagree with the conclusions reached in this staff report with respect to Apple. Our company does not have a dominant market share in any category where we do business. From its beginnings 12 years ago with just 500 apps, we've built the App Store to be a safe and trusted place for users to discover and download apps and a supportive way for developers to create and sell apps globally. Hosting close to two million apps today, the App Store has delivered on that promise and met the highest standards for privacy, security and quality. The App Store has enabled new markets, new services and new products that were unimaginable a dozen years ago, and developers have been primary beneficiaries of this ecosystem. Last year in the United States alone, the App Store facilitated $138 billion in commerce with over 85% of that amount accruing solely to third-party developers. Apple's commission rates are firmly in the mainstream of those charged by other app stores and gaming marketplaces. Competition drives innovation, and innovation has always defined us at Apple. We work tirelessly to deliver the best products to our customers, with safety and privacy at their core, and we will continue to do so.

Apple plans to provide a more in-depth refutation of the allegations levied against the company by the antitrust subcommittee in the near future.

The report lumps Apple, Google, Facebook, and Amazon together and says that the four corporations "share common problems" such as controlling access to markets, charging exorbitant fees, imposing oppressive contract terms, and using their dominant positions to maintain market power by shutting out rivals.

The full 450 page report [PDF] released by the U.S. government featured a number of recommendations for future antitrust laws and practices that will impact Apple if eventually adopted.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple 'Vehemently Disagrees' With U.S. Tech Company Antitrust Report

 

[SDJim]

Honestly, equating this with the steel/oil/railroad monopolies is absurd. The two are categorically different.

 

[DelayedGratificationGene]

Ridiculous political grandstanding that has no basis and is a complete waste of time

 

[newyorksole]

Not surprising at all that they disagree. It is a pretty wild accusation. Apple isn’t perfect and are a global powerhouse, but I don’t really see what they’re doing wrong here...

 

[IlluminatedSage]

Of course Apple doesn't agree. they want to force up to 30% of all dollars spent via their devices to them.

I remember the good old days of just buying software/services anywhere you were able to and install it. I want that back!

 

[saulinpa]

Someone needs to look up the definition of monopoly. Apple has plenty of competition. The others, not so much.

 

[JM]

As Apple should.

I'll take Apple's premium products and experience any day over the competition.

But come now: everyone that is for breaking up Apple should feel good knowing that history shows that a company won't dominate forever. Apple's time is now, but it won't be forever.

That's not a knock on Apple, it's just the way things are. Capitalism as an idea fosters competition where the weak and slow-to-adapt will fail, and if Apple doesn't keep up, they'll go under too.

But, right now, Apple is kicking butt (mostly).

What we don't need is government stepping in to regulate.

 

[now i see it]

Uhh... What are  lawyers going to say? "You'are correct Your Honor".

Apple lawyers defending Apple. What a surprise!

 

[vipergts2207]

As Apple should.

I'll take Apple's premium products and experience any day over the competition.

But come now: everyone that is for breaking up Apple should feel good knowing that history shows that a company won't dominate forever. Apple's time is now, but it won't be forever.

That's not a knock on Apple, it's just the way things are. Capitalism as an idea fosters competition where the weak and slow-to-adapt will fail, and if Apple doesn't keep up, they'll go under too.

But, right now, Apple is kicking butt (mostly).

What we don't need is government stepping in to regulate.

I don’t think most people are advocating for the most extreme solution of breaking up Apple. If we even see anything in the first place, it will likely be some light regulation.

 

[Plutonius]

Did anyone think that Apple would agree with the report ?

 

[JPack]

US Smartphone Market Share: By Quarter - Counterpoint

- US Smartphone Market Share: By Quarter - Counterpoint

www.counterpointresearch.com

 

[DelayedGratificationGene]

How dare the government try and disrupt the iOS operating system that I implicitly trust and love! This is why I buy Apple products for Pete’s sake! Keep your ignorant hands off!

 

[pavinder]

Apple are clearly a very different category than Google, Facebook and Amazon.

Just for starters, Google and Facebook track people’s web activity and use that data for profit. Apple does nothing of the sort, in fact is outspokenly in favor of strong user privacy.

Amazon is by a long way the market leader in online sales, no other company comes close. Google and Facebook are also huge market leaders in their areas of operation.

Apple doesn't dominate any market at all (as this article points out), it simply provides a premium range of products and user experience.

So while it could be argued that the other three companies are “monopolies” in some way, I find it completely misguided and irrational that Apple is being lumped in with them.

 

[McKodiak]

I don’t think most people are advocating for the most extreme solution of breaking up Apple. If we even see anything in the first place, it will likely be some light regulation.

I’m afraid the regulation will be to the detriment of exactly what they built for their consumers. Apple’s customers chose the ecosystem for a reason. The government should ask the customers of the ecosystem.

 

[jonblatho]

I remember the good old days of just buying software/services anywhere you were able to and install it.

You mean to tell me Apple didn’t invent that?

/s

 

[farewelwilliams]

indie developers agree with apple.

 

[goobot]

Well in terms of Facebook they shouldn’t ever been allowed to buy Instagram and what’s app, they are almost a monopoly in that regard.

 

[pacalis]

I don't in anyway believe that Apple is a monopoly. But even it was, I hasn't engaged in any monopolistic behavior to protect its marketshare. And then, even if it did, where's the harm? They're comparably priced to other high end competitors.

Like most Apple customers, I love the fact that Apple products aren't the disaster muck of other platforms (as I fart around trying to get the video card of my pc to work well, now that I can't play 120 fps Fortnite with my kid on my ipad pro).

[automerge]1602031292[/automerge]

Well in terms of Facebook they shouldn’t ever been allowed to buy Instagram and what’s app, they are almost a monopoly in that regard.

Yes, neither of those should have gone through. This same group was asleep at the wheel.

 

[Blu Reel]

Of course Apple doesn't agree. they want to force up to 30% of all dollars spent via their devices to them.

I remember the good old days of just buying software/services anywhere you were able to and install it. I want that back!

Hmmm...I remember those good old days and those days that followed…
Let's see, the dwindling software options on the shelves at stores like Fry's Electronics. Less and less new software.
I do remember seeing a surging demand for anti-virus software, too, during that time.

Oh yeah, and 30% is small price compared to having to pay for printing, packaging, delivery and maintaining physical inventory for software.

The PC revolution came to fizzling end

And then the App Store came…

…and breathed new life to the solo entrepreneurial programmer market. A single programmer could actually make money simply by writing code and not have to design a package, have it printed, shipped to a distributer, make business contracts with retailers, and maintain physical inventory (what does all that have to do with programming?).

oh, and what virus on the smartphone platforms?

And now there's at least a dozen apps per topic/subject to choose from and room for competition as each one solves needs and problems differently.

Yeah, this is one techie that does not fondly remember those parts of the good old days.

That being said, I am against Adobe's MONOPOLY and subscription only model on their software

 

[NMBob]

I guess Apple's payoffs aren't paying off.

 

[pacalis]

Ya Adobe's another one. Facebook, Google, Amazon and Adobe. All very problematic companies.

Apple, Microsoft, not so much.

 

[ani4ani]

Someone needs to look up the definition of monopoly. Apple has plenty of competition. The others, not so much.

What competition is there for selling iOS apps? Please guide me to all these other stores I can get my software for my iPhone cheaper? ....and before you say it, I don’t own an Android phone and I don’t want to; I spent my $1000 on an iPhone and I had no idea I couldn’t buy my software from anyone but Apple. (Note...this is an example to make a point not my personal predicament)

 

[macduke]

You know Apple thinks this is a dire situation if they reach out to MacRumors for comment. I’ve been reading here since 2005 and registered in 2007 and don’t think I remember that happening before?

I think some of these companies are monopolies for one reason or another but Apple doesn’t even have leading market share. Maybe leave us alone? We like our privacy and security and paying more to have it. Hopefully if they open up for multiple app stores they can just make it a security toggle where you have to enter your passcode twice with a strict warning message. I’m fine with keeping my iOS locked down.

It’s going to be interesting to see how this plays out. I think it could kill the console market if they’re forced to allow whatever software to run on consoles. Then they’d have to sell them for full price and at that point a lot of people will either not buy one or just get a PC. There won’t be any reason for Nintendo, Sony or Microsoft to invest in developing, marketing, and shipping consoles if they don’t get any cuts of game sales. It’s the ecosystem.

 

[wrkngclasshero]

I wouldn’t mind if this lead to a more permanent side-loading option for iPhone users than the current 7 day expiration method available now.

 

[WhoDaKat]

Of course Apple doesn't agree. they want to force up to 30% of all dollars spent via their devices to them.

I remember the good old days of just buying software/services anywhere you were able to and install it. I want that back!

Why do you have an iOS device? Android is a great platform, you should use it instead of whining. I would say the vast Apple user base is more than fine with the App Store. People always lament over the "walled garden" lol, that has been the primary selling point for me! If you wanted side-loaded apps, and over the top customization, a platform already exists for you. Why pi$$ in everyone else's cheerios!