Influence versus monopoly
Tech journalist Charles Arthur recently tweeted a link to the article Time to prosecute Apple for monopolisation. The piece essentially argues that the FTC should ” bring a monopolization case against Apple”. This, apparently, because Apple is “using its power in anticompetitive ways”, methods which are “far beyond even what Microsoft was lambasted for doing to Netscape and other emerging competitors in the now-ancient 1990s”.
This is an argument I read surprisingly often. The problem is false equivalency. Perhaps people have short memories, but Microsoft got hit in the 1990s not only because of some decidedly dodgy tactics, but because it practically owned the desktop and mobile (in the sense of notebooks) computing spaces. Apple was the main competition at the time, but its slice of the pie was tiny, and so Microsoft could strong-arm much of the industry into doing what it wanted and annihilate competition whenever it felt the need.
It would be ridiculous to argue Apple doesn’t have clout and influence. When the company enters a new market, it’s wise for the competition to respond rapidly. But to argue Apple is in any area operating a monopoly is absurd. In smartphones, even the most favourable figures have Apple with about a fifth of the market. In music sales and streaming, Apple has a big presence, but we’re not in the high-90s per cent. And although it’s accurate that Apple essentially forces all apps for iOS to go through the App Store, that’s not a monopoly position, because you can buy smartphones with other operating systems.
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