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!

Or

Sign up to gain exclusive access to email subscriptions, event invitations, competitions, giveaways, and much more.

Membership is free, and your security and privacy remain protected. View our privacy policy before signing up.

Error: Please check your email address.

Tags GoogleAppleantitrustAdMobiAdsApple 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

Brand Post

Most Popular Reviews

Latest Articles

Resources

PCW Evaluation Team

Luke Hill

MSI GT75 TITAN

I need power and lots of it. As a Front End Web developer anything less just won’t cut it which is why the MSI GT75 is an outstanding laptop for me. It’s a sleek and futuristic looking, high quality, beast that has a touch of sci-fi flare about it.

Emily Tyson

MSI GE63 Raider

If you’re looking to invest in your next work horse laptop for work or home use, you can’t go wrong with the MSI GE63.

Laura Johnston

MSI GS65 Stealth Thin

If you can afford the price tag, it is well worth the money. It out performs any other laptop I have tried for gaming, and the transportable design and incredible display also make it ideal for work.

Andrew Teoh

Brother MFC-L9570CDW Multifunction Printer

Touch screen visibility and operation was great and easy to navigate. Each menu and sub-menu was in an understandable order and category

Louise Coady

Brother MFC-L9570CDW Multifunction Printer

The printer was convenient, produced clear and vibrant images and was very easy to use

Edwina Hargreaves

WD My Cloud Home

I would recommend this device for families and small businesses who want one safe place to store all their important digital content and a way to easily share it with friends, family, business partners, or customers.

Featured Content

Product Launch Showcase

Latest Jobs

Don’t have an account? Sign up here

Don't have an account? Sign up now

Forgot password?