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Apple and AT&T are in hot water with the FCC

More antitrust antics
Monday, 3 August 2009, 09:12

FRUIT THEMED gadget maker Apple is in hot water with US regulators over its attempts to shut down Google's Voice service.

Federal regulators are concerned that Apple and its network partner AT&T worked together to reject mobile apps for Google's Voice service.

The FCC has sent off stern letters to Apple (PDF) and AT&T (PDF) asking them to explain this incident. It apparently is concerned that Jobs' Mob might be colluding with AT&T by using its Apps Store to shut down competition to both it and its mobile telecom provider.

It seems the FCC is fed up with Apple manipulating the market through its apps and its secret random policies. The commission is believed to be interested in mandating openness for Apple's Iphone Apps Store as well as similar software stores run by Sprint, Verizon and even Google.

The FCC wants to know the who, what, why and when of the rejection of the Google Voice app for the Iphone. Google Voice, still an invitation-only beta program, lets users channel all their calls through a single Google Voice number which offers cheap international calls, free long distance calls, free text messaging and voicemail transcription, though calls through its mobile app still use minutes on a mobile phone.

The FCC has noted that Apple has pulled a number of applications for "capricious" and "unfair reasons". Apple also forced Slingbox to cripple its video streaming application so that it would only work over WiFi, and not a mobile carrier's network. However Apple promoted a Major League Baseball app that would be an even heavier burden on the network.

The FCC's new chairman Julius Genachowski reportedly is furious at Apple and AT&T's actions, which he says raises questions about practices in the mobile marketplace.

Apple has reason to fear the FCC. The Obama commission does not like mobile phone exclusivity deals such as the lock AT&T has on the Iphone in the US. It is investigating to determine if these sorts of deals are made at the expense of consumers' interests. µ

 

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Comments
Great....

I guess it's an effort to improve the witty, sarcastic irony of this site that made you accept such a classy, polite and definitely refined comment like "suck a bag of dix".....

I cannot help but congratulate on the great taste your editors are showing...

posted by : zio, 03 August 2009 Complain about this comment
The FCC have no idea,

if they allow Google Voice, this will steal the bread off Mr. Stephensons' Table? by allowing almost anyone to leach off there Network for free? (Sans Data Plan).

Not to mention all those Crack Dealers who will also hack into all those Towers with there Jailbroken Phones, unless the Government, allows Apple the right prosecute all those criminal scum that dare speak ill of his holiness, and dare to defile there Jesusphone's with blasphemous Software.

Apple are just looking out for the best interest for everyone involved.

*Everyone that is, but the End-User!!

posted by : Anonymous , 03 August 2009 Complain about this comment
MIssing something

You and many other sites are missing the bigger picture.

Why would Apple reject an app from a preferred developer?

Think long and hard on that and you will see why the FCC being involved is not bad for Apple, Google or AT&T...

posted by : minssing, 03 August 2009 Complain about this comment
Why do I have to pay for this?

I', not an iphone user, an itunes user, or an AT&T customer.

Why does my tax money have to pay for this? I say, if Google has been wronged, let AT&T and apple pay for the FCC investigation (ie a fine for being naughty). If Google has not been wronged, let Google pay (ie a fine for false accusations).

I'm sick of my tax dollars being wasted because a corporation wined.

posted by : mike, 03 August 2009 Complain about this comment
Monopolies and Nonsense

@mike Oh, so you think that you are only allowed to have justice if you can pay? That's an interesting position. Why have the rule of law or public defenders then? Nevermind.

@ the public with brains
Locking your competition out is part of the definition of a monopoly. When Microsoft did it in the 90s with DOS (and allegedly with IE, though not really) Job's Mob had a hissyfit, but now that they're the ones doing it, it's somehow okay.

The whole concept of locking phones to networks is like having appliances that all run on different mains, and then outlawing mains converters. So if your wife wants a blender and you want a toaster, you need to pay two different power companies. What's that? You can't get toaster power in this area, only blender? Guess you can't have a toaster. It's makes no sense.

As far as this particular issue is concerned, I hope Apple gets it in the teeth. Apple is the biggest proprietary monopolistic entity out there, but they've lasted this long because they were always the "poor little fruit-based company that everyone picks on". No more. People complain that Windows comes preloaded with IE and WMP, but it doesn't flat-out BLOCK you from using something else. If a little application on the iPhone can do something different or better than the original programming, shouldn't Apple ENCOURAGE it? After all, that would only serve to make the iPhone more popular. But no, Apple isn't satisfied with making a LOT of money, they want to make ALL the money. Sounds like a monopoly to me.

posted by : JonB, 03 August 2009 Complain about this comment
You wouldn't want Ford to require only Ford parts would you?

It doesn't matter how much market share Apple's iPhone has, or that you _could_ just buy another phone. If you buy an iPhone then it's your phone and neither Apple nor AT&T should be able to tell you what you can do with it, or what apps you can run on it.

It's like Ford saying you have to buy all of your parts only from the "Ford Parts Store" and since they have a deal with Exxon, you can only buy your gas from Exxon. They've even changed the gas tank opening to only use special Exxon gas pumps. Oh and they'll sue anyone who makes a gas pump adapter or tried to use a non-Ford approved air filter. Doesn't make sense? Why not, you could have always bought a Chevy...

A few years back you could only plug in a true authentic authorized Bell telephone into your phone jack. Ma Bell made a mint on phone rentals. Official phones have few features, weighed a ton, and cost an arm and a leg. Ma Bell also spoke of disastrous consequences should any non-Bell blessed phone be connected. Guess what, I haven't seen a 'true Bell' phone in ages. The phone system is still up and running......

posted by : jilocasin, 03 August 2009 Complain about this comment
Lots of non-legal minds here

Love the AT&T example above... one difference - that was the only option for some people.

As Nick happily points out in most articles, the iPhone is hardly a monopoly... you don't like the apps store... BUY A DIFFERENT PHONE!!!! It's not like you can only use iPhones for AT&T service - what exactly is the problem here?

Don't like the App store policies... buy a different phone and take your chances with their apps... there are plenty of non-iPhone ATT solutions and plenty of non-ATT solutions for those whining.

posted by : quit whining, 03 August 2009 Complain about this comment
So Apple HAS to accept apps, now?

It's their phone and their apps store - basically a phone that has what 10-20% of the market HAS to accept apps? Don't like it use another phone. Does iTunes have to carry all music too?

Just went down to Macy's apparently Obama is now requiring them to carry all clothing lines and they cannot selectively choose what they want... nor can they do any sort of exclusive deals.... anything they sell has to be able to be sold at other chains.

Folks seem to be under the impression that somehow Apple and the iPhone and At&T is a monopoly and Google is this poor little company struggling to get along... how many different phone and service options are out there these days? Welcome to the Euro-ization of the US (or should I say socialization?)

I love the comparison between Microsoft, which has 95% of the OS market share, with Apple in the phone space... seems pretty appropriate? It's good to see such clear thinking... and here I was thinking that Apple bashing might unduly influence the comments.

The metaphor of it being like appliances running on different mains is also great... as the comparison between electricity providers (of which there is typically one) and wireless providers (I think there might just happen to be more than one?) also seems dead on. The problem with this ridiculous metaphor is you don't have a choice of electricity providers...

Taco Bell, McDonalds, etc... all lock out either Coke or Pepsi - maybe we can get Obama working on that too! Maybe the anti-trust folks can break up that collusion and clearly anti-competitive behavior! Oh wait you mean each chain doesn't own a majority of the market so an exclusive deal is not necessarily anti-competitive - who woulda thunk it!

Next thing you'll be telling me Apple and AT&T doesn't own most of the wireless phone market.... wait a second this just in - they don't!

Ignorance abound....

posted by : holy bad metaphor Batman, 04 August 2009 Complain about this comment
What do you run on a taco? What won't Macy's let you customize about your dress?

holy bad metaphor Batman:
You spend alot of time comparing Apple to McDonalds or Taco Bell or Macy's.

You should be comparing them to Ford, or Dell, or well... Apple.

TacoBell may not sell you a Coke, but just what are they preventing you from running on that taco?

McDonalds may only sell hamburgers, but they aren't trying to prevent you from watching Opera while you eat it.

Macy's may only sell you a particular brand of spandex, but thy can't stop the 400 woman from wearing it.

The problem with you rebuttal is that none of these places have much to do with Apple and iPhones. Apple is selling you a product and trying to force you to use it only in ways they approve of. You have to use it with their blessed provider. You can only run applications on it that they approve of. None of your examples counters that.

It also doesn't matter that they don't have a monopoly. That you are free to buy some other phone. There are many many automobile manufacturers out there. Yet they can not force you to use only preferred gas. They are not legally allowed to force you to only use parts or third party customizations that they approve of through their company store. Apple shouldn't be any different.

You defense of Apple in this situation fails to defend against anything they are accused of doing.

Ignorance may abound, but it seems to be closer to home that you realize.

posted by : jilocasin, 04 August 2009 Complain about this comment
jilocasin is just another secretly jealous Apple hater because he wants an iphone and cant afford it.

are you an idiot? It is no different than places only selling coke or pepsi. COMPETITION!! What if I want to drink pepsi with my MCdonlads burger? Can I make mcdonalds sell me pepsi? The bottom line is YOU DONT HAVE TO USE AN IPHONE. You want an iphone and you want to be able to run any app you want. Just because you paid for an iphone dont give you the right to make your own policies. You paid for an iphone so you can dictate what apple sells in the app store? LOL. It isnt about apple telling you what you can do with the phone. Its telling google its app isnt gonna be sold. Thats no different than a movie theatre deciding not to show a certain movie when the theatre down the street shows it. GO DOWN THE STREET your a fool. They cant force you to use preferred gas? Yes they can. Ever hear of natural gas? Your talking about BRAND name. They cant make you use a brand name. And bottom line, if I OWNED A STORE or YOU OWNED A STORE, its your right to decide what apps get sold in it and what dont. Just because the app have something to do with cheap international calls. Apple has every right to not sell an app for whatever reason they want. Its not gas and its not pepsi. Its apples store and they can sell what they want in it. This is just America becoming more lie Europe. SOCIALISM ABOND! It does matter that you can buy another phone besiddes the iphone. You just say it dont because you want a damn iphone. If you dont like the way apple sells apps or does business, TAKE YOUR BUSINESS ELSEWHERE. If Mcdonalds dont sell pepsi, i go somewhere that does. Not sue mcdonalds for not getting it for me. Nothing wil come of this. Its just an excuse for the government toget involved and try to regulate, yet something else they see big money and control they are missing out on. Anything as powerful as the app store, the government has to control. It cant handle not being in control. This idot on the FCC must be so iphone jealous is pathetic. I bet he uses pc;s and gets mad every time he see an apple ad. Whoever this guy is, get him out quick before they start telling you what you ca sell too.

posted by : Eric, 05 August 2009 Complain about this comment
This is just dumb!

WHat? Apple not selling an app that helps competition and reduces profits? lOL, welcome to the real fools. Its why you dont see ford cars at a chevy dealership unless its used. Bottom line, Apple has the right to reject any app for any reason. Its there store. This is dumb for the FCC to even think they can regulate what a private company sells in its store. Yu can give all the excuses you want for why its wrong, but the bottom line is, its everywhere. I see stores not selling the competitions brand all the time. Like stated above, some places only sale pepsi, others coke. Some places only sell fords, others chevy. Its everywhere. This crap about them not being able to make you use exxon gas in your car is just dumb also, its not the same things. Look at the gas station your buying exxon gas, IS IT SELLING BP GAS TOO? This government is full of hypocrisy and is apple dont want to sell a google app than by god, its there store, there decision. DOnt like it, go to sprint. Ask yourself. If you owned the app store. If it was YOUR STORE and YOR INVENTION. What if you started an industry. Would you like the government telling you what you can and cant sell? Regardless of whats fair and whats not fair. WOuld you want to be told by the government what you can and cant do? Now they are telling apple they have to let all apps in? Or only ones THEY, the FCC approve? So a the FCC is secretly wanting to be behind the curtain giving apple the thumbs up on each app and they wont be happy until they do. Thats what this is about. The FCC getting its hand s in on the app store. People are flocking to the iphone so much they have to do something about it. Its so big, its like the competition is old news. So they cant cry monopoly but they are having to do something. ANd this is what. Sounds to me like this is just a bunch of jealous apple haters making trouble where there shouldn't be any.

posted by : john, 05 August 2009 Complain about this comment
WHat? Are they crazy?

Anyone ever think appel dont a damn BETA app running on its network? All kinds of security holes etc may be in it. If it has to do with international calls and stuff like that, sounds like a hotbed of trouble. I woudlnt want a BETA app on my network either. Finalize before getting it out. This isnt Photoshop. Its an iphone app.

posted by : Socialism Anyone?, 05 August 2009 Complain about this comment
What about google search or google chrome browser or chrome os? Google is gonna rule our world and you worry about Apple?

Google is the closet thing to a monopoly on the internet and you complain about apple. ID rather see apple gain more power than add more to what google already has. Look at google search and how they did everyone? YOU THINK ITS A LITTLE ANTI-competitive to have only google search on the browser. Look at the top of any browser and youll see "GOOLE" some dont even give you another choice. No one says anything about this? Screw Google, They get into the Browser market, they own youtube, they are making there own os. So lets see. Google OS, Google run internet, Google with Youtube, Now google android and complaining about the app store. Seems like goggle is looking for domination and you guys are dumb for letting it happen. it sounds like you dont care what happens just as long as us apple snobs dont get our way. You would let google own the world as long as apple dont get what it wants right?

posted by : Down with Google I say......, 05 August 2009 Complain about this comment
Fairness

For all those who don't "Get it". if you have an iPod Touch you are forced to use the App store. If you have an iPhone you are forced to use the App Store. When you have an item and you are forced into using 1 particular means of distribution that might be considered a monopoly.

For all who say go buy a zune, go buy a palm pre that awesome. Thats like playing baseball and the home team add's runs to their score whenever they feel like it because its their stadium. If you dont like the team go travel 1,000 miles to find another team!

Its my belief about whats "fair" is under scruitny here. There is no accounting for what is approved or rejected or removed from the app store all of which are applied in this apple-att-google case.

posted by : rich, 05 August 2009 Complain about this comment
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