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Any discussion of monopoly must demonstrate harm to the consumer. Breaking up companies for breaking ups sake is not the spirit of antitrust law. In this case,
by dereg 4y ago
Any discussion of monopoly must demonstrate harm to the consumer. Breaking up companies for breaking ups sake is not the spirit of antitrust law.
In this case, I can argue that Apple is protecting us from crappy companies. Tile sold its business to Life360. Life360 sells users' location data to anyone willing to pay for it. What's the fundamental cost to society of keeping companies like Tile around?
Maybe Life360 goes out of business. A bunch of engineers get hurt, some product people, marketers, accountants, administrators. 300 employees, laid off. That sucks, I agree. The effort of earning 27 million MAUs will be thrown down the toilet if they fail. That sucks. Now Life360 users must migrate to something that Apple offers. Is the product better? Yes. Does Apple have a fundamentally rivalrous relationship with its users? No. Does Apple sell users' data? No. I see no demonstration of consumer harm in this segment.
Let's take a real hard look at the people harmed by Apple's monopoly. These are other monopolists of their own vertical who are incensed that they can no longer enjoy monopolistic rents. Furthermore, that company may go out of business. The people being put out of business are likely engineers who would have no trouble finding another job. I do not have sympathy for technologists. I do have sympathy for the tens if not hundreds of millions of people in America who struggle to make a living. What's the effect to them if we break up Apple? Nothing. What's the effect if we don't break up Apple?
Apple at this point in their life has reached a point where its value proposition is more than just a luxury. They've created meaningful products creating meaningful changes in lives. Apple Watch has helped vulnerable folks (including me) get emergency services via fall detection, which leverages technologies and products made possible by Apple's "monopoly". Apple gives consumers the option to privately monitor their own home and premises through Homekit whereas other surveillance services brazenly monetize their services by selling data to law enforcement.
In the case of Homekit, what do consumers gain if Apple had to break out its home automation unit? They may have to pay more for that standalone service or else have their data monetized in other ways. Is that good for consumers? Heck no. What's paying for those services now? Apple's "monopolistic" profits.
I could go down the line with every one of Apples units and services. They've helped my family experience a level of richness that we've never enjoyed before.
For as much as pockets of the tech industry grandstands about "monopoly" because they don't like IAP rules, actual people don't care because they have benefitted greatly from what this "monopolistic" entity has contributed to their lives. You're going to have a tough time convincing me that this would all be possible had Apple not consolidated many parts of the industry.
> Yes, because there's a fundamental cost to society.
Insofar as my non-tech family and friends see it, this "cost" to society has been more like a dividend. When Apple starts acting maliciously, I'll drive everyone here to your local Attorney General's office.
Here's how I see Apple: Apple is Jupiter. It's the largest planet in the solar system. Is it terrifyingly large? Yes. Is it protecting me, Earth, from getting smashed by asteroids? Definitely. I like Jupiter.
- kaba0 4y agoDon’t forget to calculate into the picture all the companies that can’t even emerge due to Apple being there. What if down the road Apple Home start to suck for anything more than the most basic usage. There is no way to compete with it on merits base, as integration is essential for such a domain and apple would not let it not due to having a better product but due to simply owning the platform.
- theshrike79 4y agoThere are apps build on top of the Homekit environment: https://apps.apple.com/us/app/home-5/id995994352 https://apps.apple.com/us/app/home-5/id995994352 Home+ has been in the top 50 for as long as I can remember and it's a $15 paid app.
- lwhi 4y ago.. and if Apple want to get rid of it at any point, they will.
- dereg 4y agoI have considered this and, in a former life, I likely would have agreed with you. To use another analogy: Apple builds a beautiful, big house with no locks. A very wealthy family moves in. They love their new house. Then some folks started snooping in to spy on the household or to steal from them. Some of those thieves decide to use their loot to create more houses for the community. This causes the community to flourish. Others keep the loot to themselves. Apple realizes this house needed locks from the start, so they install them. The community is arguably negatively affected, as there is no longer a home to steal from. Does this make it wrong for Apple to install locks? Early, unfettered access to users and user data created a sort of primordial soup for innovation. It's impossible to argue that it didn't increase company formation. However, many companies grew by trodding on ground they should have had no right to.
- ricardobeat 4y agoThis analogy is so wildly off the mark I don't even know where to start. The core of the issue here is not user data, but the ability to interoperate with the phone OS. It's absolutely possible to do that without exposing sensitive data, by providing APIs and adopting open standards (for payments, notifications, message extensions, maps, etc etc). Case in point, it would have been technically impossible for Tile, or anyone else, to create a product as good as AirTags. That was not a matter of product vision or creativity, only of who has actual access to the phone hardware. A better analogy would be that Apple does not allow you to bring third-party furniture into the house. You must buy theirs. And then the same for food, and eventually clothing, and water, and electricity... one day you bring this really cool TV into the house, just released, guess what's their next product offering that will slot in seamlessly with your furniture? (I use all things Apple, but this power is starting to get me concerned)