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Apple is first to face European Commision after Microsoft defeat

19 September 2007 6:16 by Rich "vurbal" Fiscus | 7 comments

Now that the EU Commision is done with Microsoft's antitrust appeal, which the software giant lost, at least one expert believes Apple may be the next company to face penalties.

"The decision by the Court of First Instance is a clear signal to the European [Competition] Commission that it has the leeway to go ahead," said Herbert Hovenkamp, a professor at the University of Iowa College of Law and a noted antitrust scholar. "[The commission] now has a license to go ahead, and they have a pretty aggressive posture. I think this bodes ill for some companies."

Although the commission didn't indicate any particular position on the matter in an April statement, saying "The Statement of Objections does not allege that Apple is in a dominant market position," the company will have to answer questions in hearings starting today. The hearings will revolve around the issue of whether the iTunes pricing structure, combined with a restriction that residents of each EU country may only make iTunes purchases in their own country's stores, violate EU laws.

Certainly Apple's market strategy is to use iTunes' industry dominance to fuel iPod sales, something other handheld music player manufacturers aren't happy with. Apple is already facing multiple lawsuits in the U.S. claiming that restrictions on copying iTunes downloads to other devices for consumption are anti-competitive.

The results of legal action on both sides of the Atlantic could cause a major shakeup in the mobile audio business. In the EU it could also be an indication of the future for companies like Rambus, Intel, and Qualcomm, all of whom face antitrust investigations by the commision.

Source: Computerworld

Permalink to this article

Yahoo management considering deal with Google to avoid MS buyout - or maybe not (4 February 2008)

Apple reportedly planning iTunes HD (6 October 2007)

Vivendi CEO calls iTunes pricing indecent (26 September 2007)

iTunes attempts to block free ringtones (8 September 2007)

Apple wants to lower TV show prices (8 September 2007)

European Commission, Apple and record labels to meet over antitrust charges (7 September 2007)

Apple DRM attacked as anti-comptetitive in Florida lawsuit (7 September 2007)

EC downplays iPod competition worries (27 March 2007)

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nobrainer (Inactive) 19 September 2007 8:08
about time, it's not so much apple but the record studios that dictate the regional price fixing scam so lets hope this happens soon and we can enjoy a fair price in europe. BTW Record Industry AssHoles: Sony BMG Music Entertainment, EMI, Universal Music Group, Warner Music Group. [ + quote]
LaBaMaN (Newbie) 19 September 2007 11:38
lol [ + quote]
gallagher (Member) 19 September 2007 13:04
well, screw Europe. All these American companies should boycott socialist Europe. If they do not like Micorosft products, then don't buy them. Don't like Apple (I don't) then don't buy it. If they are going to sue a company for including a free product (?!?), like Microsoft, then they are reaching too far up their rectum for something to sue over. Why don't they sue all their own state-owned media outlets, energy companies, and healthcare systems? Then we wouldn't have them all flying to the US for treatment. [ + quote]
tolstoy (Newbie) 19 September 2007 23:01
*Originally posted by gallagher:* well, screw Europe. All these American companies should boycott socialist Europe. If they do not like Micorosft products, then don't buy them. Don't like Apple (I don't) then don't buy it. If they are going to sue a company for including a free product (?!?), like Microsoft, then they are reaching too far up their rectum for something to sue over. Why don't they sue all their own state-owned media outlets, energy companies, and healthcare systems? Then we wouldn't have them all flying to the US for treatment. Since when have Europeans being fleeing to the US for treatment, most european energy systems are privitised, generally considered a mistake. Moreover, it dousn't seem particuarly likely that Microsoft or any other company would be stupid enough to boycot a market as large as Europe. [ + quote]
emugamer (Junior Member) 20 September 2007 8:08
*Quote:* Moreover, it dousn't seem particuarly likely that Microsoft or any other company would be stupid enough to boycot a market as large as Europe. That's like a fish boycotting water :-P [ + quote]
Steve83 (Member) 21 September 2007 9:00
"...first...after..." Doesn't that sort of make them "...second..."? [ + quote] This message has been edited since posting. Last time this message was edited on 21 September 2007 9:01
borhan9 (AfterDawn Addict) 27 September 2007 19:14
all about money making. [ + quote]