Obama Administration Demands Control Over Apple’s iTunes & App Store
August 5, 2013 3:32pm PST
Obama’s attorney general, Eric Holder, has now demanded oversight of Apple’s iTunes.
Holder asked a federal judge to grant his Department of Justice (DOJ) supervision of the App Store and iTunes.
As reported by Liberty News:
The request was made after NY Federal District Judge, Denise Cote, decided Apple’s “influence in the publishing market” violates U.S. Ant-Trust Laws.
Statutes like the Sherman Anti-Trust law, which Apple is accused of violating, are designed to prevent companies from growing into monopolies, fixing prices, and preventing industry competition.
The DOJ argues the intent of anti-trust laws is to protect consumers from outrageous prices imposed by large, powerful companies.
Apple will fight back against the federal government, for trying to control private companies.
One goal of the DOJ is to have Amazon.com be able to sell eBooks on Apple phone Apps without Apple making commission (Apple currently makes 30% commission on each sale). The commission, however, makes up 10 percent of Apple’s entire revenue.
Still, Apple is the company providing the online marketplace. If Amazon does not want to pay out the commission, they may simply sell their products elsewhere. According to the Wall Street Journal, Eric Holder is also “seeking a five-year prohibition on new e-book distribution contracts that would restrain Apple from competing on price.”
During a time when millions of Americans struggle to find work, why would the Obama administration want to restrain such a large, successful business (one that provides countless jobs).
Another concerning fact is that Amazon donated hundreds of thousands of dollars to the Obama campaigns. Could there be partisan motivation behind the DOJ’s request?
If so, it wouldn’t be the first time the Obama administration has attempted to pick winners and losers in the free market — does Solyndra ring a bell?
What are your thoughts on this? Let us know in the comments section below.
(H/T: Liberty News)
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