OH Please... the APP Store is not a product of Free Market Innovation.. It's basically a carrier app deck that's been redressed and updated.
Carrier App Decks have been around as long as Applications have been available on mobile phones. The fact is instead of AT&T directly controlling it, they just "influence it".
Bottom line is we should be able to go to ANY app store.
What if Microsoft required you buy any and all applications for Windows through their exclusive APP store?
How many people would go for that?
Would everyone please stop with the double standards? I mean, what's fair is fair and Apple is not being fair with the app store (AT&T not withstanding).
AF
The App store **absolutely** is a free market innovation. It was developed by a private company taking risk with their own capital, expecting a return on that investment. It was not developed by a government program or with public dollars.
Bottom line is you should be able to buy any phone you want. You can not expect to get any app you want from within that phone's ecosystem. You can make such a law/rule if you want, but then you should also expect a significant drop in companies willing to take risks to develop and deliver innovative products to you.
If MS developed an app store that required all aps for Windows to pass through their store, with their total control when they control 95% of the OS market, I would imagine that would be a problem and may be considered anti-competitive by governments. If Apple does it with the App store when the iPhone controls 2% of the cell phone market, you do not have an anti-competitive issue. You can try to make that case if you would like, but it seems a very tenuous position to me.
you conveniently forget (or maybe you're just not aware) that the whole business of att (and of apple as a supplier) is not based on "free market" but on a right, granted to att by the government acting on behalf of people, to be the only one allowed to use a set of given radio frequencies.
if the people decide that they don't like the way att operates these radio frequencies att can be penalized or ultimately right given earlier can be taken away.
A right that the government granted to several carriers to create competition. A regulation put in place to allow for a coordinated, non-interfering use of the scarce resource of air waves by private companies in a free market. ATT has not violated these regulations, and I don't think they should be expected to be a conduit to another company's communications. The FCC will certainly investigate this, and I suspect come to a similar conclusion.
Actually, what Apple created for the iPhone/iPod Touch platform is exactly the opposite of a free ecosystem. This isn't a problem for niche markets, like the Macintosh, but it is a problem for larger markets, like Windows - or the iPhone.
The EU now forces Microsoft to let the user choose which web browser they want to use; the European edition of Windows 7 will NOT come with a pre-installed Internet Explorer.
Since the iPhone, the AppStore and the iPod and iTunes are such a huge success, Apple should also no longer be allowed to have that amount of control over that closed and proprietary platform. Just like Microsoft or any other monopolist, they must not be allowed to abuse their power. They should be forced to allow the Google apps or any other application that competes with some built-in functionality. In my opinion, they also should be forced to allow ANY kind of application as long as it is not harmful. And Apple should also be forced to open their protocols so that competing App Stores can be launched. THAT would be a Free Market: It's about embracing the competition, and not about "allowing not to compete or participate".
Of course the App store is not a free market ecosystem - it was created by a private company, with private funds for sale to private customers. Apple is under no legal obligation to create a free market ecosystem.
The free market that *absolutely* does exist is the myriad of choices that exist with various smart phones and carriers for those phones. The presence of this free market will make it very, very difficult to gain any traction with an anti-competitive argument against apple for the App store.
I'm normally very pro free market. The problem with the cell phone market though is it is not free to begin with because the signal spectrum is only so large. If I could go out and start building cell towers today I would agree with you. Problem is that I can't do that. Part of the deal that the cell phone companies agreed too when buying/leasing parts of the spectrum is that they would be governed by the FCC.
You can't do it, because your signal broadcast would interfere with other signals, if everyone did it. It makes total sense for a government to regulate these airwaves to create a smooth environment for business to effectively use this scarce resources to bring products to market and make profit. The existence of such regulations does not require that every ecosystem created must be open to every other company. The ramification of such a requirement would drastically change the cell phone landscape, and probably largely kill-off for-profit-corporate investment in such ecosystems.