Several US regulators have begun looking at the terms Apple is imposing on media companies looking to sell content for iPad users, the Wall Street Journal has reported. The EU is also reportedly monitoring the situation.
According to the media report, the investigation is still at a preliminary phase, and may not lead to formal action. It centers on the fact that Apple is 'funnelling' media companies to sell their content via the App Store, in order to enable it to take a 30 percent revenue cut. While publishers can offer content via other stores, the best price must be matched via the App Store, and apps also cannot directly link to other content sources.
It is not the first time that regulators from both the US and Europe have looked at Apple's actions in the mobile space. In August 2010, both the US Federal Trade Commission and the EU were monitoring restrictions imposed by Apple on the creation of apps and content for the iPhone and iPad, particularly with regard to its blocking of Adobe's Flash technology. The company has subsequently eased its stance with regard to this technology. Prior to this, regulators had examined the company's decision to prevent Google from offering its Google Voice app from the App Store. Apple subsequently published guidelines for its software approvals process.
Search for more e-Reading Devices
To access our daily STM news feed through your iPhone, iPad, or other smartphones, please visit www.myscoope.com for a mobile friendly reading experience.
More News in this Theme
