Apple’s bozo attacks on its developer lifeblood

I supported Apple CEO Steve Jobs when he trashed Flash and banned it from the iPhone’s and iPad’s iOS. I agreed with him when he was tough on the Website that purchased (probably illegally) a lost iPhone 4 prototype. But Apple has crossed the line at least twice this month, prohibiting app developers from using AdMob and Google’s advertising services on the iPhone and censoring sexual content in iPhone and iPad apps.

Taken together, Apple’s bozo moves threaten to deprive developers — the lifeblood of any platform — of needed income, and they place Jobs & Co. in the role of a digital ayatollahs, dictating what types of content users will access on their own hardware. Neither action is good for Apple’s business, and they smack of monopolistic bullying.

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If Microsoft had done something similar, the walls would be shaking with protest. So where’s the outrage when Apple plays bully? And how did Apple, which ran the famous ad of a hammer-throwing rebel smashing an image of Big Brother, become a Big Brother wannabe?

Late last year, Google announced that it was purchasing AdMob, the leading seller of ads inside iPhone apps. The $750 million acquisition raised antitrust concerns, but the Federal Trade Commission decided that the deal isn’t likely to harm competition in the emerging mobile advertising market.

No sooner had the feds given the deal a thumbs-up then Apple turns around and uses its monopolistic power against AdMob and developers who work with it. (“Monopoly” isn’t a dirty word. Remember: It’s not illegal to have a monopoly; it’s only illegal to use that power to unfairly restrain trade.)

“Apple proposed new developer terms that, if enforced as written, would prohibit app developers from using AdMob and Google’s advertising solutions on the iPhone,” AdMob CEO Omar Hamoui wrote in a blog post. “Let’s be clear. This change is not in the best interests of users or developers. In the history of technology and innovation, it’s clear that competition delivers the best outcome. Artificial barriers to competition hurt users and developers and, in the long run, stall technological progress.”

Interestingly, the new language in the developer terms makes it OK for some developers to build ads inside iOS apps, but not others. Here’s what it says: “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.” And only “independents” have that right.

Sure, Google is Apple’s competitor in the mobile ad space, and there’s a limit to how much cooperation it’s reasonable to expect. However, given Apple’s grip on the platform — including hardware, software, and services — locking out a competitor could well be seen as a restraint of trade. It certainly makes you wonder who will be locked out next.

Suppose Microsoft made it impossible for a competitor to place ads within an application that runs on Windows? It would be denounced as outrageous. And what about the promise by Jobs, who said earlier this month, “We are not going to be the only advertiser. We are not banning other advertisers from our platform”?

Regulators take aim at Apple

The timing is coincidental, but last week it was reported that U.S. regulators are planning to investigate Apple’s business practices in the mobile advertising arena. Having regulators mess with technology companies is a very mixed bag; Microsoft needed to be reined in, but in general it’s much better for the market to decide who wins and who loses. If Apple steps over the line of fair competition, we could see a very ugly legal battle the company will regret whether it wins or loses.

Similarly, Apple needs to get out of the censorship business. If there weren’t well-developed tools that allow parents to control what their kids see on the Web, I’d be sympathetic to Jobs’ quest for freedom from porn online. But those tools exist, including a relatively simple one built into iPhone settings. Users will simply go elsewhere to get the content they want. How is that good for Apple’s business?

As I’ve argued before, Apple’s control over the Mac and now the iOS platform has been a good thing for the company and for its customers. Banning ill-behaved, power-sucking mobile apps is one thing; banning content from the platform is quite another — and so is locking out developers who pick a partner Apple doesn’t like. Knock off the bullying, Steve.

I welcome your comments, tips, and suggestions. Post them here so that all our readers can share them, or reach me at bill.snyder@sbcglobal.net.

This article, “Apple’s bozo attacks on its developer lifeblood,” was originally published by InfoWorld.com. Read more of Bill Snyder’s Tech’s Bottom Line blog and follow the latest technology business developments at InfoWorld.com.