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The question isn't whether Apple is violating antitrust regulations, it's whether the regulations will be enforced. Spotify has a slam dunk case in the regulati

The question isn't whether Apple is violating antitrust regulations, it's whether the regulations will be enforced. Spotify has a slam dunk case in the regulation heavy EU, and a very winnable case in the US (and anyone who Apple competes with in this way). They build competing products and are putting an artificial restriction to the market that they control. What Apple is doing is a direct violation of the Sherman Act of 1890, specifically Section 1, in regards to artificially raising prices by restricting trade or supply: > Every contract, combination in the form of trust or otherwise, or conspiracy, in restraint of trade or commerce among the several States, or with foreign nations, is declared to be illegal.

georgespencer 8y ago
Thanks. How does this work for Amazon? Do they have to pay a % cut for every Kindle sold? Apple pulled its products from Amazon for a while rather than selling them there because they had to take a margin hit they didn't like.
- 5trokerac3 8y ago
  There's a few good comparisons to make here, especially if we bring the Google Play Store into the conversation. Apple is big enough to pull their products from Amazon. Taking it back to the 19th century, Apple owns their own "railway". The real quandary comes in if Amazon gets so big that there's no way for a small supplier to sell a product in mass without going through Amazon and paying their premium. I don't think we're anywhere near there yet. Amazon also built their own Amazon store, to get away from the fees of Google's equally Sherman Act violating store, and in the process potentially violated the act themselves (Prime Music). Edit: I just thought of another, slam dunk case, this time for Amazon, because Apple restricts purchasing Audible books in the app, even when using existing book credits.
  - thekyle 8y ago
    > Google's equally Sherman Act violating store I am genuinely curious, does Google Play violate the Sherman Act in the same way that the Apple App store does or is it a different clause? It seems like allowing users to fairly easily side-load apps (ex. Fortnite) and the presence of competing app stores (Amazon App Store, F-Droid, etc.) should alleviate some concerns.
kolbe 8y ago
Courts do not interpret that as strictly as you think. If they did, every S&P 500 company would be in violation.
- 5trokerac3 8y ago
  Hyperbole and not true. There are very few S&P 500 that force their competitors to sell through their own marketplaces. Exxon doesn't force Shell sell their gas in Exxon stations.

georgespencer 8y ago

Thanks. How does this work for Amazon? Do they have to pay a % cut for every Kindle sold? Apple pulled its products from Amazon for a while rather than selling them there because they had to take a margin hit they didn't like.

5trokerac3 8y ago
There's a few good comparisons to make here, especially if we bring the Google Play Store into the conversation. Apple is big enough to pull their products from Amazon. Taking it back to the 19th century, Apple owns their own "railway". The real quandary comes in if Amazon gets so big that there's no way for a small supplier to sell a product in mass without going through Amazon and paying their premium. I don't think we're anywhere near there yet. Amazon also built their own Amazon store, to get away from the fees of Google's equally Sherman Act violating store, and in the process potentially violated the act themselves (Prime Music). Edit: I just thought of another, slam dunk case, this time for Amazon, because Apple restricts purchasing Audible books in the app, even when using existing book credits.
- thekyle 8y ago
  > Google's equally Sherman Act violating store I am genuinely curious, does Google Play violate the Sherman Act in the same way that the Apple App store does or is it a different clause? It seems like allowing users to fairly easily side-load apps (ex. Fortnite) and the presence of competing app stores (Amazon App Store, F-Droid, etc.) should alleviate some concerns.

kolbe 8y ago

Courts do not interpret that as strictly as you think. If they did, every S&P 500 company would be in violation.

5trokerac3 8y ago
Hyperbole and not true. There are very few S&P 500 that force their competitors to sell through their own marketplaces. Exxon doesn't force Shell sell their gas in Exxon stations.