Report: Apple's iAd could face antitrust investigation

Apple's iAd mobile advertising platform be breaking laws by not allowing Google to compete

U.S. regulators are planning to investigate whether Apple is shutting out third parties such as Google and Microsoft in advertising the iPhone and iPad, according to a report published by the Financial Times on Thursday.

The antitrust regulators are showing an interest in Apple's actions, though it remains unclear whether it will be left to the U.S. Federal Trade Commission or the U.S. Department of Justice to carry the investigation forward, according to the report, citing two people familiar with the situation.

An FTC spokesperson declined comment on the news report. Apple did not return requests for comment.

Apple on Monday introduced a mobile advertising platform called iAd, which will allow developers to earn revenue by serving ads in applications on the iPhone and other mobile devices. Apple will host the ads on its servers and get a 40 percent revenue cut, with the rest going to the developers. The company has been selling iAds for eight weeks, and commitments for the second half of the year have reached US$60 million, Apple CEO Steve Jobs said on Monday.

Apple's revised developer terms prohibit ad analytics collection unless it is provided to an independent ad service provider whose primary business is serving mobile ads. "For example, an advertising service provider owned by or affiliated with a developer or distributor of mobile devices, mobile operating systems or development environments other than Apple would not qualify as independent," the terms state.

If enforced, the proposed terms would prohibit developers from using Google's AdMob service or advertising products on the iPhone, said AdMob founder Omar Hamoui in a blog post on the AdMob site .

"This change is not in the best interests of users or developers," Hamoui wrote. "Artificial barriers to competition hurt users and developers and, in the long run, stall technological progress."

Google closed the purchase of AdMob for US$750 million in late May after the FTC said it wouldn't block the deal. Google earlier said that FTC asked for further information about the deal, pointing to the agency being concerned about antitrust issues.

Join the newsletter!

Error: Please check your email address.
Rocket to Success - Your 10 Tips for Smarter ERP System Selection

Tags AppleantitrustGoogleiAdsAdMobApple iAd

Keep up with the latest tech news, reviews and previews by subscribing to the Good Gear Guide newsletter.

Agam Shah

IDG News Service
Show Comments

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Ben Ramsden

Sharp PN-40TC1 Huddle Board

Brainstorming, innovation, problem solving, and negotiation have all become much more productive and valuable if people can easily collaborate in real time with minimal friction.

Sarah Ieroianni

Brother QL-820NWB Professional Label Printer

The print quality also does not disappoint, it’s clear, bold, doesn’t smudge and the text is perfectly sized.

Ratchada Dunn

Sharp PN-40TC1 Huddle Board

The Huddle Board’s built in program; Sharp Touch Viewing software allows us to easily manipulate and edit our documents (jpegs and PDFs) all at the same time on the dashboard.

George Khoury

Sharp PN-40TC1 Huddle Board

The biggest perks for me would be that it comes with easy to use and comprehensive programs that make the collaboration process a whole lot more intuitive and organic

David Coyle

Brother PocketJet PJ-773 A4 Portable Thermal Printer

I rate the printer as a 5 out of 5 stars as it has been able to fit seamlessly into my busy and mobile lifestyle.

Kurt Hegetschweiler

Brother PocketJet PJ-773 A4 Portable Thermal Printer

It’s perfect for mobile workers. Just take it out — it’s small enough to sit anywhere — turn it on, load a sheet of paper, and start printing.

Featured Content

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?