Lawsuit: Apple is accused of bullying Microsoft

[Xevious]

Antitrust: Apple accused of bullying Microsoft

In a case rich in irony, an antitrust suit has been filed against Apple (AAPL) accusing the company of illegally maintaining a monopoly in the digital music market by failing to support Microsoft’s (MSFT) Windows Media Audio format.
The suit was filed Dec. 31 in San Jose and brought to light Thursday afternoon by InformationWeek (http://www.informationweek.com/news/showArticle.jhtml?articleID=205207895). The plaintiff is Stacie Somers, a San Diego-based attorney represented in this case by a gaggle of class-action specialists: Craig Briskin and Steven Skalet of Mehri & Skalet, Alreen Haeggquist of Haeggquist Law Group, and Helen Zeldes. See filing here (http:///) (subscription required).


Microsoft, of course, is the company usually associated with charges of antitrust behavior, most famously for tying Windows to Internet Explorer in United States v. Microsoft (http://en.wikipedia.org/wiki/United_States_v._Microsoft). Apple was named in that case, along with Netscape and Java, as one of the threats to its monopoly that Microsoft tried to crush.


But now the New Balance 991s are on the other foot, according to Somers’ lawsuit, which quotes Steve Jobs as bragging that Apple’s iTunes store is now “the Microsoft of music stores.”


According to the complaint, Apple controls 75 percent of the online video market, 83 percent of the online music market, more than 90 percent of the hard-drive based music player market, and 70 percent of the Flash-based music player market.
Yet among the major digital music vendors, Apple is alone in not supporting Windows Media Audio. The suit estimates that Apple could license WMA from Microsoft for less than $1 million — or about 3 cents for each iPod sold in 2005.
According to InformationWeek:
… the complaint goes beyond software licensing politics and charges Apple with deliberately designing its iPod hardware to be incompatible with WMA. One of the third-party components in iPods, the Portal Player System-On-A-Chip, supports WMA, according to the complaint. “Apple, however, deliberately designed the iPod’s software so that it would only play a single protected digital format, Apple’s FairPlay-modified AAC format,” the complaint states. “Deliberately disabling a desirable feature of a computer product is known as ‘crippling’ a product, and software that does this is known as ‘crippleware.’ ” (link (http://www.informationweek.com/news/showArticle.jhtml?articleID=205207895))
Apple has faced other antitrust charges over its dominant position in digital music. See for example here (http://www.appleinsider.com/articles/07/11/07/class_action_charges_apple_with_illegally_tying_ip ods_to_itunes.html). Most of these cases, however, complain that Apple maintains its grip by tying the iPod to the iTunes store. This is the first time Apple has been charged with trying to muscle Microsoft out of the market.
Apple, as usual, is declining to comment on pending litigation.



http://apple20.blogs.fortune.cnn.com/2008/01/04/antitrust-apple-charged-with-bullying-microsoft/

[eswat]

:roll::roll::roll::roll::roll::roll::roll::roll::r oll::roll::roll::roll::roll::roll::roll::roll::rol l::roll::roll::roll:
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etc.

[lokizz]

wow bigtime pot and the kettle moment. didnt think this day would ever come but here it is lmao. here they have a damn monopoly on software for pcs and theyre whining about apple not using their format for their ipods? stupid.

[bigdaddy]

:rofl:

[mykevermin]

Meanwhile, MS is trying to buy up movie studios to exclusively distribute their content through their own digital channels. They're failing miserably at it, but it's a few layers or irony at the least.

[karmapolice]

M$ needs to die.

[Sir_Fragalot]

This is why I hate Microsoft for the exception of the 360 somthing they didn't fuck up that badly (except for the red ring of death problem).

You have your OWN fucking MP3 player which I do own a version of. Why are you complaining about other MP3 players not supporting your format when you should be embracing that your player uses it and how good it is? Essentially what you are doing is whining because your format is not #1 and when everyone sees this they are going to go buy a iPod now because you are too much of a fucking baby, lol. Nice one Microsoft.

[rodeojones903]

Meanwhile, MS is trying to buy up movie studios to exclusively distribute their content through their own digital channels. They're failing miserably at it, but it's a few layers or irony at the least.


That is the reason I am angry at MS right now.

[Snake2715]

wow interesting.

I wont own either a zune or an ipod due to the proprietary music. I would rather just drag and drop whatever type of file I have stored and have it play.

[PyroGamer]

30 second MS pain political cartoon time!

http://img519.imageshack.us/img519/7374/msbullyjx7.jpg


*cough* OOXML *cough*

[davo1224]

This is awesome. Apple's so high and mighty it makes me sick.

[karmapolice]

This is awesome. Apple's so high and mighty it makes me sick.

Apple acts the same as they always have, its just that more people are now paying attention. Microsoft is just getting scared by their sudden success.

[UncleBob]

I just don't understand all of this "anti-trust" crap.

So Apple sells a product that only works with one of their other products. Don't like it? Don't buy it.
So Microsoft gives away software (browser) with their software (OS). Don't like it? Buy a different browser (or different OS).

This is crazy though. Apple is breaking anti-trust laws because they don't want to pay Microsoft to license their WMA format?

What?

[mykevermin]

This is crazy though. Apple is breaking anti-trust laws because they don't want to pay Microsoft to license their WMA format?

What?

Indeed. It'll get thrown out of court, simply because digital distribution channels don't lead to monopoly structures the same way they exist elsewhere. Anyone with time and moxie can go up against iTunes and iPod - and MS has and is. They, just like everyone else, won't succeed.

[help1]

I hate Apple. Macs suck.

Damn spinning rainbow. If MS was smart they would just buy out 60 second ads of the spinning rainbow, and then at the end say "Apple."

[Dead of Knight]

Ahahahahahahahahahhaa. Hahahahahha. Hahaha. Ha. Ha. HA.

They both suck. But MS is just ridiculous.

[ZForce915]

I hate Apple. Macs suck.

Damn spinning rainbow. If MS was smart they would just buy out 60 second ads of the spinning rainbow, and then at the end say "Apple."

I'm no Mac fanatic, but Macs suck? What are you basing that on?

[help1]

I'm no Mac fanatic, but Macs suck? What are you basing that on?
My usage of them. Hate is an opinion, last I heard. Are you going to dispute that with me?

Don't get me started on iPod heads. I am surprised more iPod heads don't get hit by oncoming traffic, being lost in their own little "worlds" of crappy music.

EDIT: That is not to say MS is a great company either...

[karmapolice]

My usage of them. Hate is an opinion, last I heard. Are you going to dispute that with me?

Don't get me started on iPod heads. I am surprised more iPod heads don't get hit by oncoming traffic, being lost in their own little "worlds" of crappy music.

EDIT: That is not to say MS is a great company either...

So you hate them because the public made them into a fad? If they sucked no one would have them. I own an ipod but i dont think its the most amazing thing ever... I use it to listen to music on the go. I could care less who made it.

[help1]

So you hate them because the public made them into a fad? If they sucked no one would have them. I own an ipod but i dont think its the most amazing thing ever... I use it to listen to music on the go. I could care less who made it.

Unconditional love is what I hate. Prime offenders: Ipod and the Wii.

[karmapolice]

Unconditional love is what I hate. Prime offenders: Ipod and the Wii.

So you hate Halo?

[ZForce915]

Unconditional love is what I hate. Prime offenders: Ipod and the Wii.

Correction: iPod and Christians. :D

I wasn't looking to start anything, your first statement was short and sounded ingorant. But if you base that opinion on acutally using a mac then at least it is justified. A lot of people will bash something without knowing jack about it.

[lokizz]

Unconditional love is what I hate. Prime offenders: Ipod and the Wii.

id like to second that. the whole ipod obsession is why i steer clear of ipods that and the ridiculous pricing of them and drm. theres plenty of mp3 players out there that do the same thing if not better and cheaper. and dont get me started on the nintendo fanboy bullshit man its damn disgusting. that said if macbooks were cheaper id buy one since from what i hear they dont crash as much as regular notebooks and i do like my ds alot. blind loyalty to anything is just retarted.

[Xevious]

ummm....I don't think Microsoft is filing this lawsuit. A lot of the responses seem to indicate that you guys think that Microsoft filed the lawsuit but the article listed some other plantiff.

[Liquid 2]

I love how people hate Microsoft just to hate Microsoft. Or just because Microsoft is a successful company.
You never see anyone bitching about Google or anything similar. :roll:

That being said:
1) Microsoft didn't file this lawsuit, as anyone with basic reading skills would have realized. It's a group of "class-action specialists" who are looking to make a quick buck
2) Who the fuck uses or cares about WMAs anyways?

[bobbyblane]

I love how people hate Microsoft just to hate Microsoft. Or just because Microsoft is a successful company.
You never see anyone bitching about Google or anything similar. :roll:

That being said:
1) Microsoft didn't file this lawsuit, as anyone with basic reading skills would have realized. It's a group of "class-action specialists" who are looking to make a quick buck
2) Who the fuck uses or cares about WMAs anyways?

Good points. I'd just like to chip in that Apple's most recent financial results (for their 4th quarter) ended up giving them a net profit of $542 MILLION. While Microsoft makes a ton more than that (recently to the tune of 14 BILLION), the ultimate goal of both these companies is the same. There is nothing wrong with making money and seeking a profit. I'd just like to know from some of the people who are unjustly accusing MS in this lawsuit (and others for that matter), if they would turn their backs on Apple if the roles were reversed.

It seems to me like people have some sort of problem with success in this country. It really bothers me that companies like MS get such a bad reputation when they aren't doing anything wrong. Don't forget that Bill Gates started out as the little guy and worked his way up to the top. He didn't force people to buy his products when he started, nor is he forcing anyone to buy them now. So flame away while you use your Windows computers and enjoy the benefits of capitalist progress which has given you the luxuries of modern day life. Just remember that no business is guaranteed success in America. It has to be earned by the customer

[Liquid 2]

Good points. I'd just like to chip in that Apple's most recent financial results (for their 4th quarter) ended up giving them a net profit of $542 MILLION. While Microsoft makes a ton more than that (recently to the tune of 14 BILLION), the ultimate goal of both these companies is the same. There is nothing wrong with making money and seeking a profit. I'd just like to know from some of the people who are unjustly accusing MS in this lawsuit (and others for that matter), if they would turn their backs on Apple if the roles were reversed.

It seems to me like people have some sort of problem with success in this country. It really bothers me that companies like MS get such a bad reputation when they aren't doing anything wrong. Don't forget that Bill Gates started out as the little guy and worked his way up to the top. He didn't force people to buy his products when he started, nor is he forcing anyone to buy them now. So flame away while you use your Windows computers and enjoy the benefits of capitalist progress which has given you the luxuries of modern day life. Just remember that no business is guaranteed success in America. It has to be earned by the customerYou and I would get along. :applause::D

[Zenithian Legend]

Wow Microsoft has all the integrity of a bag of dogshit at this point.

[mykevermin]

It really bothers me that companies like MS get such a bad reputation when they aren't doing anything wrong.

Missed that European antitrust ruling, did ya?

[rapsodist]

Unconditional love is what I hate.
Taken out of context, this is one of the most virulent statements I have ever read at CAG. :lol:

[camoor]

There are plenty of big tech companies that don't get the same amount of hate as Microsoft.

Aren't you the least bit curious as to why that is?

All the FUD they spread about Linux and open-source software (including propping up BS patent trolls like Sco)

Their monopolistic business practices (bundling of their inferior web browser is only the latest incarnation of this)

BSOD, Bugs, and Bloatware

Lack of innovation

Etc etc

Damn I hate Microsoft. However I've got to admit that the XBox 360 will be an attractive piece of hardware if they fix the RROD (did I mention M$oft products tend to be glitchy?...)

[help1]

So you hate Halo?

The franchise? No, no I don't. Some of the fans? Yes.

The melee is broken, and the game needs better maps. Not to mention some Halo fans won't even give COD 4 a chance, or any other game for that matter, and other "fanboys" will blindly claim that Halo beats COD 4 in all respects, which of coure is not true.

I could see why you would think that I am a Halo fanboy, since I almost always have a Halo oriented avatar or sig, but that doesn't mean I am blind to its obvious flaws.

;)