Tuesday, February 15, 2011

Apple's Subscription Rules Raise Possible Antitrust Issues

The Wall Street Journal
FEBRUARY 15, 2011
By NATHAN KOPPEL

Apple's new subscription service has fallen under antitrust scrutiny.  Publishers will be allowed to sell subscriptions of various media via Apple products under two conditions: subscriptions must be sold through Apple's store and subscriptions outside of Apple must allow Apple to sell for the same price or less.  What will be key is determining how much control of the market Apple currently has.  As we learned, trusts limit competition and therefore raise price, hurting the consumer.  Publishers may be concerned that Apple is using their dominant control of the market to restrict competition.

No comments:

Post a Comment