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Google accuses Apple of ad discrimination

by on11 June 2010

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Anticompetitive conflict between iAd and AdMob


Google, the world's leading Internet advertisement company, accused Apple earlier this week of severely limiting developer access to its mobile iAd platform. The new decision underscore the rising competition associated with selling ads on mobile smartphone platforms, a fast-growing market in which both companies hope to outpace each other.

In the most recent battle between the two mega corporations, Google claims that Apple has amended its in-app advertisement policy for anyone who develops applications for its trio of iPod, iPhone and iPad mobile devices. According to the Wall Street Journal, the new language prohibits some ad companies from collecting usage data from mobile applications in the App Store, effectively blockading access from collecting data within Apple’s mobile device ecosystem.

Apple, the fruit-themed toymaker, amended its rules on Monday to only allow an exclusive list of ad companies to compete with the iAd platform, as long as the ad companies aren’t affiliated with any company that produces or distributes mobile smartphones. In other words, Apple’s legal advisors have taken an alleged glimpse into the future by assuming that there could be potential for more competition than just Google.

On Wednesday, Google AdMob founder Omar Hamoui said in a blog post that the new rules, “if enforced as written, would prohibit app developers from using AdMob and Google’s advertising solutions on the iPhone.” He went on to express his belief that Apple’s new rules affect both large and small developers by “severely limiting their choice of how best to make money.”

After Google announced the deal in November 2009 to buy AdMob, Apple responded by purchasing Quattro Wireless, an AdMob rival. However, AdMob has since undergone immense investigation by the FCC to ensure Google’s purchase wasn’t a monopolistic acquisition with anticompetitive intentions.

Analysts are claiming that Apple’s advertisement policy change would not only affect Google, but would also have an impact on Microsoft, RIM and Nokia mobile application ecosystems. In fact, before Apple amended its policy, the Department of Justice and the FTC were already moving to examine whether Apple’s business practices are anticompetitive. At this point, it is unclear whether preliminary investigations have begun.

“Artificial barriers to competition hurt users and developers and, in the long run, stall technological progress,” said Hamoui on Wednesday.

More here.


Last modified on 11 June 2010
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