It seems to me that there are some great similarities between the monopoly that Microsoft was purported to have established with its Internet Explorer web browser being bundled into all copies of Microsoft Windows several years ago and with Apple’s apparent monopoly with their iPod and iTunes system.
First, I don’t think that Microsoft was really at fault several years ago with their inclusion of Internet Explorer with all copies of Microsoft Windows. It was pretty obvious that Microsoft was moving towards incorporating IE as a core system component of their operating system, and thus including it was necessary to allow for the evolution of the operating system. If they had specifically prevented other web browsers from being installed on the system, then it would be a different story, but to simply include their own (which was really just a part of the OS) is hardly an issue. Today’s consumers expect that when we purchase a computer, it will do much of what we need it to do right out of the box. This includes such basics as being able to browse the Internet (as well as many other things, such as CD burning, etc.). I think that Microsoft was simply operating as a responsible business looking to grow their products by including IE in their OS as a core component. Don’t get me wrong…I think there are other times and things that Microsoft has been wrong on, but I think that in this case Microsoft may have gotten a raw deal. Of course, I don’t really know all the fact, but only what I recall the media reporting and what I remember occurring. Pleaes feel free to correct me if I’m wrong here…
On the other hand, if Microsoft did get in trouble for doing this, then I certainly think Apple should get in trouble for their “monopoly” with their iPod and iTunes music store. It would seem to me that there is no reason that you can’t use the iPod to take advantage of other music services and stores available publicly (such as Yahoo!, Rhapsody, Napster, etc.). Specifically, it seems Apple has locked the iPod into the iTunes store for music purchases, which is very similar to what Microsoft was accused of doing with their locking customers into the Internet Explorer web browser with the purchase of a Windows operating system. Sure, you can load other music onto the iPod (such as CD’s you own, etc.), but in the same fashion you could also have loaded other web browsers onto the Windows operating system. The concern back then, as it should be now, is the dominance of the initial product (iPod and Windows operating system) and the unfair competitive advantage this gives the associated product/service (iTunes and Internet Explorer). However, the real difference between these two cases is that the inclusion of the Internet Explorer browser did not specifically preclude the addition or use of another piece of software. In the case of the iPod, there is very limited (and none in some cases, such as subscription based services) capability to use other music stores or services.
For instance, I am very much a fan of the subscription based Napster service and utilize the Napster To Go service so that I can pay a fixed monthly rate and download as many songs as I’d like on my computer and portable music device. However, this service, along with any other music store or service is not available to iPod users unless they first purchase the music track outright, download it to their computer, and then transfer it over to their iPod. Any subscription based service just can’t be used on the iPod. This severely limits customers such as myself, as well as other music services that are now losing big portions of their market because Apple has chosen to lock them out.
It is extremely unfair that this should be occurring, and I think the time is right for a lawsuit against Apple for this very unfair competitive advantage that they are using.
I’m honestly surprised that there is not a bigger uproar regarding this very unfair situation, both to consumers and music stores/services. However, at the very least I wanted to make my position clear and hope that others follow suit and sometime soon a change occurs.
UPDATE (1/16/07)
I just came across an article published by the NY Times that speaks exactly to this issue…how incredibly ironic that I find it just a few days after posting the above…
Want an iPhone? Beware the iHandcuffs
If the above link no longer works, you can find the text of the article here