FTC opens task force to keep tabs on competition in US tech market
The U.S. Federal Trade Commission on Tuesday announced the formation of a task force to track competition in U.S. technology markets, potentially putting tougher scrutiny on the practices of companies like Apple, FaceBook, Google, and Microsoft.
The Technology Task Force will draw on existing staff from the Bureau of Competition, including 17 attorneys, the FTC said. These people will specialize in areas like online ads, social media, and -- most critically to Apple -- apps and platforms, including mobile operating systems.
"The role of technology in the economy and in our lives grows more important every day," wrote FTC chairman Joe Simons. "As I've noted in the past, it makes sense for us to closely examine technology markets to ensure consumers benefit from free and fair competition. Our ongoing Hearings on Competition and Consumer Protection in the 21st Century are a crucial step to deepen our understanding of these markets and potential competitive issues. The Technology Task Force is the next step in that effort."
The group will also collaborate with the FTC's economists and Consumer Protection specialists.
The FTC has turned its scrutiny to Apple in the past, for example examining App Store policies regarding music streaming. For the moment the organization has become an ally -- it launched a lawsuit against Qualcomm in January 2017, accusing it of pushing Apple into an exclusivity deal in exchange for iPhone baseband chips. That trial completed in January 2019, though a verdict has yet to emerge.
Apple could come under pressure from parties upset that the App Store remains the only sanctioned place to get iOS apps, and that it suppresses competition by taking a 30 percent cut from third-party subscriptions, while natively integrating its own services like Apple Music.
The Technology Task Force will draw on existing staff from the Bureau of Competition, including 17 attorneys, the FTC said. These people will specialize in areas like online ads, social media, and -- most critically to Apple -- apps and platforms, including mobile operating systems.
"The role of technology in the economy and in our lives grows more important every day," wrote FTC chairman Joe Simons. "As I've noted in the past, it makes sense for us to closely examine technology markets to ensure consumers benefit from free and fair competition. Our ongoing Hearings on Competition and Consumer Protection in the 21st Century are a crucial step to deepen our understanding of these markets and potential competitive issues. The Technology Task Force is the next step in that effort."
The group will also collaborate with the FTC's economists and Consumer Protection specialists.
The FTC has turned its scrutiny to Apple in the past, for example examining App Store policies regarding music streaming. For the moment the organization has become an ally -- it launched a lawsuit against Qualcomm in January 2017, accusing it of pushing Apple into an exclusivity deal in exchange for iPhone baseband chips. That trial completed in January 2019, though a verdict has yet to emerge.
Apple could come under pressure from parties upset that the App Store remains the only sanctioned place to get iOS apps, and that it suppresses competition by taking a 30 percent cut from third-party subscriptions, while natively integrating its own services like Apple Music.
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But increasingly, agencies are being politicized and given politically motivated missions. I would want to know the need for this body above and beyond the "technology is important" excuse.
I saw mention of this a few weeks ago and TBH am not at all surprised that the FTC would have some competition concerns. Between Apple and Google there's little room for anyone else in the mobile space, and in consumer-forward technology it's largely controlled by a very small handful of companies. In general any smallish but innovative companies or any startups finding initial success are fairly quickly snatched up by one of the deep-pocketed big boys, and for the remainder the large techs have put in place significant roadblocks and landmines in order to control their markets and keep the smaller players at a disadvantage.
For a number of little technology companies their best hopes for success lie in attracting the attention of Apple, Google, Microsoft, or Amazon and get bought out.
I have noticed that individuals across the pond like to take any opportunity to insert their political point of view. Even if it's not relevant to the story.
This is not a paid advertisment for any political party.
Just a point of view like the statement quoted above
So, what's the goal here? What problem are they trying to solve or agenda to complete? It goes directly against their historical ideology.
Normally I would be in favor of these mega corporations being watched and regulated, but seeing as the current administration is supposed to be all about eliminating regulation, I’m suspicious of what the real goal is here. It seems in stark contrast to their stated position of eliminating regulation. It might be more about taking control of industries the conservatives don’t have a foothold in (like they do in the industries where they kill environmental regulation).
Having a political point of view is part of being a member of a society. You can’t get away from politics unless you extricate yourself from society entirely. Business and politics are intertwined and always will be.
Like when you buy food at the movie theater consession stand, there’s both an extra cost versus the same food you could buy outside and also a prohibition on bring in and consuming food from outside while attending a movie on the theater’s property. iOS is Apple’s property. The videos you watch, via YouTube or any other source, and the apps and media you run, are all being run via calls to Apple’s API’s. This is also true for Windows, et al; the fact those other OS vendors chose not to prohibit externally sourced apps does not argue that Apple has no right to do so. It’s how they maintain a superior experience. It may not be possible to do so if they didn’t lock it down as they do. Witness Android...
You can watch the film without eating anything.
You cannot use an iDevice without iOS.
The two are intrinsically connected and this raises questions. The App Store is currently winding its way through the US system to decide if it constitutes some kind of abusive/uncompetitive system.
I believe that the EU is also reviewing different aspects of digital platforms.
I will add that it is completely legal to take your own food to the cinema in Spain and all of the cases that have been to court on this subject have come down on the side of the consumer. Cinemas still try to ban you from taking your own food hoping that you won't bother to make a formal claim. Fines against cinemas can be as high as 6,000€ when they do go to court.
The logic behind this is simple. Food and beverages are not the prime activity of the business and not allowing you the option of taking your own food allows for abusive practices as there is no competition.
If the cinema (or theatre or whatever) in question does not offer food or beverages, then you cannot take your own.
If the main activity of business is food and beverages, you cannot take your own either.
Social media is proving to be a problem for cinemas on this issue. In one well known case someone opted to take the Burger King menu into the cinema but the cinema refused to let the person in with it. He agreed to dump it but demanded a complaint form (a government form that all establishments must have). The cinema people continued to argue their case but the client just said he would file the complaint and see what the final ruling was. He proceeded to see the film.
On leaving, he was met by cinema staff offering to cover the cost of his meal but in exchange for withdrawing the formal complaint. He refused and eventually won the case and thanks to Twitter it did the rounds on social media.
Not really. Apple supplies the infrastructure which includes the bandwidth and accounting. Apple supplies free development tools and resources. Developers know up front that Apple charges this amount and they elected to develop apps knowing that. Developers can develop for other platforms if they aren’t happy. Last I checked the mark up can be significant in regular retail.
Yes but you can use iOS without the App Store much like you can go to the movies without buying food. I bought a phone primarily to call people, text, read my email, and surf the internet. I can do all of this without the App Store which is just a bonus. The original iPhone didn’t even have an App Store.
It all boils down to competition rules and consumer protection legislation in the place of operation (Spain/EU in this case).
As the article and FTC point out, we will need to evaluate the power of certain companies in certain realms to see if they are stifling competition in some way and legislate accordingly.
Oh, I've never said that, we can be worse than any other country.
Most time I have read a news spot in the states there is a conspiracy angle.
I used to think our news agencies were the most (even if I agreed with them).
Until now. Not saying ours is not any better but ours is not worse.
I am not saying I am not a hypocrite because the odds are I am. it just getting exhausting that you can't look at a news spot without having some type of an agenda. Or have to figure out how you're going to say something to make sure that somebody is not going to twist it around.
I thought it was a good idea what your government is doing.