Apple, Spotify & the Threat of FCC High-Tech Regulation

by on September 23, 2009 · 9 comments

Over at TechDirt, Mike Masnick has an interesting post asking “Why Did Apple Approve Spotify?” which builds on an AdAge column asking a similar question: “Did Apple Sacrifice ITunes With Latest Apps?”  As the title of that AdAge piece suggests, some folks are wondering if Apple shot itself in the foot by approving Spotify, a music streaming app that some regard as a potential iTunes killer.  I don’t really have any comment on the business angle here, rather, I wanted to just comment on Mike’s suggestion that one possible explanation for Apple’s approval of the app is that:

As we noted when the app was approved, Apple appears to be somewhat gunshy, following the FCC inquiry into why it “blocked” Google Voice on the iPhone (and, yes, Apple still insists it didn’t actually block the app, but Google says otherwise). Given the scrutiny, Apple probably realized that it was in for some serious political trouble if it blocked an app like Spotify, which would have received a lot of press attention. Oddly, the AdAge article doesn’t mention this at all.

Indeed, it is odd that AdAge didn’t bother mentioning that fact.  But what I find doubly odd here is that nobody is even blinking an eye at the prospect of such political meddling with — or even possible FCC regulation of — Apple, iTunes, or music streaming market in general!  Seriously, have we gotten to the point now in our Bold New World of Neutrality Regulation that innovative high-tech companies must live in fear of constant regulatory intervention even when they completely lack any statutory authority to play these games?  Moreover, does anyone think that the a bunch of Beltway bureaucrats can micro-manage music and high-tech application markets and give us more options than we have today?

I know the prospect of such meddling makes some academics and regulatory activists groups happy, but I can’t see how this ends well for consumers or high-tech markets more generally.  Regardless, for those of you who laugh when we suggest that the slippery slope of regulation is real, consider this case to be Exhibit A.  Or perhaps it’s Exhibit B since the Google Voice spat with Apple was already moving the FCC in the direction of becoming a device regulator and applying “handset neutrality” principles that have no basis in law.  It’s your anything-goes government at work.

  • mwendy

    This fits in with the general theme of the administration – FDR's so-called 2nd Bill of Rights. In this instance, the right to have “…adequate…recreation.”

  • dm

    Wait a minute. You keep saying that this regulatory fear will lead to reduced consumer choice. And now you're trotting out an example of increased consumer choice to support the argument? (Of course, you've been doing that all along with your fretting that ATT may have to give up its cozy relationship with Apple, to the benefit of consumers.)

  • http://techliberation.com/2009/09/26/google-voice-the-slippery-slope-of-net-neutrality-regulation/ Google Voice & the Slippery Slope of Net Neutrality Regulation — Technology Liberation Front

    [...] to FCC regulation of web-based apps!  Again, this is the point we have stressed here again and again and again and again when opposing Net neutrality mandates: If you open the door to regulation on one [...]

  • http://techliberation.com/2009/09/27/is-apples-iphone-the-end-of-innovation-hahn-singer-on-handset-exclusivity-fears/ Is Apple’s iPhone the End of Innovation? Hahn & Singer on Handset Exclusivity Fears — Technology Liberation Front

    [...] it’ll hardly be the end of innovation in this marketplace. And we certainly don’t need handset regulation or “device neutrality” as a solution to this non-problem.  Read Hahn and Singer’s paper for a better understanding [...]

  • http://blog.pff.org/archives/2009/09/is_apples_iphone_the_end_of_innovation_hahn_singer.html The Progress & Freedom Foundation Blog

    Is Apple’s iPhone the End of Innovation? Hahn & Singer on Handset Exclusivity Fears…

    In a week in which neutrality regulation is making a lot of news, I hope that Robert Hahn and Hal Singer’s terrific new study, “Why the iPhone Won’t Last Forever and What the Government Should Do to Promote its Successor”……

  • http://www.r4karte.de/ r4 dsi

    The growing use of WebKit in iTunes today could be a step in that direction. Apple didn’t have to write separate Mac and Windows renderers for the new iTunes LP content or the new iTunes Store — they just used WebKit, which already works great on both OSes.

  • http://www.r4karte.de/ r4 dsi

    The growing use of WebKit in iTunes today could be a step in that direction. Apple didn’t have to write separate Mac and Windows renderers for the new iTunes LP content or the new iTunes Store — they just used WebKit, which already works great on both OSes.

  • http://techliberation.com/2009/10/11/wireless-innovation-is-alive-well/ Wireless Innovation is Alive & Well: Two New Reports Set the Record Straight — Technology Liberation Front

    [...] regulation is increasingly in the air these days and many lawmakers and activist groups now have the mobile marketplace in their regulatory cross-hairs. Critics make a variety of claims about the wireless market [...]

  • http://starttags.com/tags/mike-masnick mike masnick – StartTags.com

    [...] tirelessly working to provide insight, and don't seem to be as much of a fixture on Techmeme …Apple, Spotify & the Threat of FCC High-Tech Regulation …Over at TechDirt, Mike Masnick has an interesting post asking Why Did Apple Approve Spotify? … I [...]

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