Posts tagged ‘AT&T’

Conspiracy Theory Monday

By , 24 August, 2009, No Comment

While others were beaching it up, I spent my weekend poring over the responses from Apple, Google and AT&T; to the FCC over the iPhone-GoogleVoice snafu. AT&T; essentially repeated its earlier statement, with more umph—it takes no responsibility for what happened and says Apple was acting alone.

Apple tried to hedge it, first claiming that the GoogleVoice application hasn’t been rejected but is ‘still under review’ then listing reasons why it might deserve to be rejected. A host of tech commenters, led by Michael Arrington, called the first claim a bald-faced lie, and I’m inclined to agree. The FCC wouldn’t be investigating this if the application-rejection hadn’t provided the smoking gun. The FCC would not launch an investigation if Google’s complaint was simply that the process was just taking too long.

On the second point, however, I’m inclined to think Apple has a point. Not a legal case, to be sure (on legal grounds, I fully support them getting an FCC walloping), but a business one.

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Good News that Makes Me a Little Bit Mad

By , 2 August, 2009, 5 Comments

The FCC is investigating Apple’s decision to disable third-party iPhone apps that let users access Google Voice from their phones, and to reject Google’s own application providing the same service. At first, most tech commenters were eager to exonerate Apple by blaming it all on Big Bad AT&T;, who, as a telecom provider, obviously have a competitive reason to block any VOIP technology.

But as the FCC letter to AT&T; points out, AT&T; has no problem letting users access Google Voice over AT&T;’s network when they do it on a BlackBerry. As the FCC’s decision to send a letter to Google too highlights, there are legit fears of Google from Apple’s side as well: Google has its own phone, where it gets to engage in its own application cherry-picking.

Now Apple, who obviously don’t have anything approaching a monopoly on handsets, can’t be accused of monopolization (using market power to eliminate competitors) as Microsoft was a decade ago. AT&T;, if it turns out they were involved, could be accused of using market power over networks/connectivity that way. What Apple would be on the hook for is colluding with AT&T; in a way that bars competition. Even though it’s clear that banning Google Voice bars competition–ie VOIP competing with AT&T;’s network–it’s unclear to me whether that competition threatens Apple directly. Google, broadly, poses a threat to Apple, but this specific feature might not if it improves the appeal of the iPhone. I don’t know enough about the part of antitrust law that covers collusion (as opposed to the section covering monopolization) to know if the colluding company must be enhancing ITS OWN market power/eliminating ITS OWN competition to be guilty. Commenters, please help out?

On the whole, however, I’m glad the FCC is looking into it–that’s what antitrust regulators are for. What upsets me is that the regulators seem disproportionately inclined to take on cases of companies that upset consumers, where it’s clear how the man-on-the-street is negatively affected by the practice at hand. So because most consumers like Google, hate AT&T; and could care less about Apple, this case makes sense to the Feds.

Meanwhile, the Feds do not bite as often at companies who might be violating anti-trust law in a way that restricts the market at either a more abstract, or simply a less consumer-facing way. Consumers love Google and resent/mistrust the big names in paid content, so the Feds have, until this administration, overlooked the fact that behind the screens Google is establishing a sealed monopoly of online data that prices out whole sectors of content creation, whether that means new web-based news organizations or music, or book or film distribution channels, and impairs the monetization capacity of other sectors that might one day move online.

If the laws bar restrictions on competition (which they do), those laws need to be applied indiscriminately to all companies not only because that’s what rule of law means but also because the unchecked power of companies we like now may prevent the creation of companies we would like tomorrow.