Friday, February 18, 2011

FTC and DOJ monitoring Apple's new subscription policy

Both the Justice Department and the Federal Trade Commission are aware of the new policy Apple implemented for media companies with applications in the App Store. The new terms require media providers to sell their media through the App Store if they sell this content through another outlet.

A prime example is the Sony Reader app which was reportedly rejected from the App Store because it sold eBooks from its own digital store and not within its iOS application. This new policy takes effect June 30 and will drive many purchases through the App Store, giving Apple a 30% cut.

U.S. regulators are taking a closer look at this policy to determine if it runs afoul of any federal antitrust laws. This interest is preliminary and may not turn into a formal investigation or sanctions against the company. The European Union is also closely monitoring this situation, but is currently not taking any action either.

Apple was under the microscope last year following its decision to ban iOS applications developed using third-party tools such as Adobe Flash. Both the FTC and the European Commission launched an investigation, but Apple reversed this policy before a decision could be made by either regulatory body.

FTC and DOJ monitoring Apple's new subscription policy originally appeared on TUAW on Fri, 18 Feb 2011 12:30:00 EST. Please see our terms for use of feeds.

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