Monopoly money, not so much.

MONDAY, JUNE 7, 2010


Monopoly money, not so much.

This all started very innocently. I contend that many of the big companies out there are doing business in a way that would make Theodore Roosevelt roll over in his grave. Some know that the guy with a big stick used it frequently to enforce the Sherman Antitrust Act. Most know he is dead. Teddy was the "Trust-Regulator". Forty-four trusts were dissolved during his two terms as president. Very basically Trusts were huge business entities that controlled the markets and economy and were or became monopolies.

MicroSoft has taken a beating over the years in the courts and continues to take its licks in the European Union. Now it is somebody else’s turn. MicroSoft is no longer at the very apex of the technological food chain. Certainly it is far from being off the hook.

It looks like the new bad boy bully of the technology markets could just be Apple. I hope Steve was watching closely as he was throwing the stones at his rival.

Our ‘good boy’ Mr. Google is happy to provide instances of possible improper behavior. It’s not that Google has any vested interest considering Android and its own desire to take over the world. Just paste: Apple flash music investigations monopoly and your Google search yields 460,000 results (0.34 seconds). The Google search for: Apple iPad investigations monopoly yields About 2,300,000 results (0.32 seconds). Apple Department of Justice investigations yields About 271,000 results (0.37 seconds) while DOJ investigation Apple yields About 360,000 results (0.37 seconds). Apparently more people prefer not to type out that long string too… but that’s a lot of monopoly talk.

At this point no one is saying “Go Directly to Jail. Do not collect $200.” but there is some conjecture.

So how could this happen? Haven’t the Apple Boys always worn the white hats in their battle with the “Evil Empire”?

Pretty much the answer to that depends upon who you ask. And, there are plenty of people to ask right now.


Apple recently Dethroned MicroSoft as the world’s biggest ‘Tech Company.’ It is far easier when throwing stones to find the biggest target available. Plenty of past offenders are jumping on the bandwagon and maybe not casting the first stone but are piling on by throwing many second, third and fourth ones; attempting to divert attention from themselves. As Apple keeps gobbling things up, making their devotees more and more do it the “Apple Way”. Apple becomes more and more susceptible to the adage that even the blind sow finds an acorn once in a while. Translated into Antitrust witch hunting this means if you throw enough stones in as many directions as possible, sooner or later someone is going to hit a Bulls Eye.

All those folks from Adobe, every conceivable aspect of the music and entertainment world and any hardware or software competitor is going to do all they can to keep the ball rolling. As it heads downhill this will gain momentum whether justified or not. Now that DOJ is involved there is no telling who wants to run for higher office and can use this as a springboard to jumpstart a career that has not even begun yet.

Apple recently got nailed by a Television station that was curious as the failed customer about why she was required to purchase an iPad with a credit or debit card; why her cash was turned down. So much for greenbacks being the legal tender of the U.S.A. If you didn’t have a credit or debit card Apple would not sell you an iPad. PERIOD. How crazy does that sound to defend. Apple caved on the policy and almost immediately did some fancy footwork making sure that its stellar image was not tarnished. To not give credit where credit is due, I will not plug the station or the woman that did most of the footwork to make Apple change this policy. Instead I will plug one of my favorite tech sources where most of the relevant information can be found in case further information is desired: http://news.cnet.com/8301-13506_3-20005481-17.html


In the interest of brevity I will provide as few details of actual facts as possible. If interested; just Google. I am pretty sure Bing will work for this pursuit also. I am sure some other search engines have a beef with Apple too.

Some people were curious if I was on crack when I first starting pushing the idea of Apple as a monopoly, a while back. Of course they all own Apples, are devoted customers and are dear friends. Apple has never let any of them down and that is what people want in a technology giant. If I had enough money I would probably have more than a few Apple devices around the house besides that single iTouch.

Apple in my estimation has been very democratic providing me ways to rip my own CD’s and upload music that I did not have to buy from them to load into iTunes. They even gave me the software for free so that I could do that on a competing platform and OS. That to me is White Hat kind of stuff. Unfortunately, it's almost like the Dope Dealer that always provides free samples; the children are eventually hooked.

Let’s not be mistaken. Apple is chasing the kids harder than Joe Camel ever did. The kids are the future and the upcoming mature market for Apple products and services... Those already available and those yet to be developed.

Just look at an iPod or an iTouch and compare it to a Zune or some other MP3 player. Even unsighted kids would have the Apple product if given a choice. You almost have to be a crack or meth head to chose otherwise.

One of the early theories of refusing to sell one of their hardware products for cash was to enforce the Apple policy that every human on earth is only allowed to own two iPads to put a halt to possible exploitation and exporting of huge numbers of them via the gray market to places around the world where these things are just not available. Supposedly, there was too much stress on the manufacturing process just trying to provide iPads to those who were allowed to have them. As if at one sold about every 15 seconds since their introduction was not already putting a lot of stress on Apple and their Asian manufacturers. Apple stated this was not the reason for the credit or debit card only purchase policy.

Apple gave that lady a free iPad which should have more than made up for their faux pas. The new Apple policy went like this: "... According to Apple, anyone who would like to pay cash for the iPad at an Apple Store can now do so. The real catch is that cash buyers must create an Apple account in the store. Those who pay with a credit or debit card can set up their Apple accounts at home." The operative phrase though is “can now do so” since that was prohibited generally prior to this new policy. Since that policy has obviously changed and I have little interest about why it was ever instituted in the first place, I will stop beating this dead horse except to write: So, now you can purchase for cash… but, you can not own an iPad unless you have an Apple Account or set one up at the store before you can take possession of the purchase since the purchase can not happen until the Apple Account is set up. More on this later.

I will not cover, but will mention the AT&T partner and the bait and switch accusations that are flying everywhere about the changes to the $30 per month unlimited Data Plan that ain't what it used to be. AT&T was forcibly reorganized with help of the federal government. They could not be up to their old trick, are they? I know NetFlix and a lot of other streaming media executives are livid at AT&T and Apple over this mid stream adjustment that will impact whether or not people download media over the 3G network or have to download media to their home computers and then sync them with iTunes. For a real treat Google this one.

Apple is becoming embroiled in many of the same difficulties MicroSoft and others in the technology world were involved with and accused of years ago: foisting on users of their products unreasonable and unfair business practices. I don't know the full extent of the DOJ investigations of the policies that Apple is using to try to maintain complete and total control of their hardware product lines, their music and software. There is a lot more behind keeping Adobe Flash off of the iPad, iTouch and iPhone. There is a lot of the manipulation that is going on behind the scenes than is not obvious to the casual observer or might even meet the eye of experienced investigators.

I tend to be far more critical of Apple AND any other big company than some of their adherents. I do not pull any punches with MicroSoft or Hewlett Packard. As a young man, I had to build my first truly functional computer from parts I purchased from many vendors because IBM, Apple and other large personal computer manufacturers had strangleholds on the markets, materials, pricing and the other issues. The same applied to the software companies and there is no love lost between me and Adobe or MicroSoft.

I am not just always popping off or whining or crying wolf. I know whereof I speak. I really don’t want to attempt to build a tablet computer given the state of the tech world today materials and software wise.

One lawsuit against Apple regarding these issues was filed long ago. I do not know whether there was resolution but that one stemmed from things brought up in Anti-Trust suits against Apple from 2005 and earlier regarding some of their unfair trade practices. This is not something that just reared its ugly head.

I doubt Woz was upset because he couldn’t get replacement parts for a Newton.


I suggest for those interested in some of these issues they investigate a little more thoroughly including reading this brief article:
http://www.srimeenakshimobiles.com/forums/apple-inc-products-news/23547-monopoly-investigation-apple-widens-report.html


and possibly this article:
http://modmyi.com/forums/mac-news/712114-us-investigating-apple-over-itunes.html


Most certainly don’t skip Motley Fool: http://www.fool.com/investing/general/2010/05/26/itunes-a-digital-music-monopoly.aspx

I must heartily agree with one of Fool's conclusions from that link: "You're just too good, Apple. It's not your fault that you were stuck on stage with musicians who never learned how to play their instruments."


Apple continues to be an innovator. I will not let them off the hook because that is true and they are so good at it.


Apple is really good at what it does; in fact Apple is great at it. How exactly they got so good likely will end up embroiled in the courts over years to come; even longer as they get bigger.

And to let you know. I will very likely purchase an iPad if I can do it without a credit card. Most likely I will wait for second or third generation when I fully expect a much speedier and more capable processing chip, at a minimum an SD slot and a USB slot and hopefully a decent webcam.


I have hacked solutions and made to work far too many first generation iterations of hardware and software over the years. At my age I can't keep performing Beta Testing or continue paying through the nose for what is currently the best out there, just because it is.

I am not saying that the iPad is a budget buster. The Yugoized $499 model is certainly inexpensive for what it is. I am however thinking that $829.00 for the 3G 64 gig model is slightly higher than many full blown WinDoze portable computers with huge hard drives and very capable processing chips; approaching some of the WinDoze Tablets that convert from keyboard portable to Tablet mode by rotating the screen and folding it over on the single hinge that also are far more capable than the iPad, even if not quite as glitzy. I still don't get why Apple didn't just make an airPad by whacking off the keyboard and putting a decent processor with a solid state drive with USB, web camera, et al. Instead they reinvented the wheel. It is a pretty wheel and a little cheaper wheel than an airPad would have been but a far less capable one.

Heck, the MacBook is still just $999 not including any educational discounts. Change the hinge and that would blow us all away. Most likely there would not be one sold every 15 seconds from their introduction. Maybe they would not be changing the way we do computing but at least if we were actually computing they would be equal to the task.

I am very happy and proud that Apple is already introducing the next version of its OS for the iPad that will allow multitasking. I often enjoy listening to music while surfing the interweb. Multi-tasking will mean that I will not have to listen to music on our iTouch while I surf the web on the iPad or have to turn on the radio or CD player if someone else has the iTouch.


When I do get an iPad I am hoping I do not have to buy a special application available ONLY at the Apple Store just so I can print from my device. If I do install an application that is NOT bought at the Apple Store and Apple certified and approved, and then load it onto MY machine; I do not expect it to void my warranty or to put me in some breach of a user’s agreement that I had to sign to use the device I purchased. If those things continue to happen I think they meet some of the definitions of what monopoly is all about.


FYI - Apple flash music investigations monopoly… Google search yields 460,000 results (0.34 seconds); The Google search for Apple iPad investigations monopoly yields About 2,300,000 results (0.32 seconds).


Apparently, I am not the only one thinking this way. We are not all on crack. Are we?

Despite all of this, Apple will continue to grow and improve. I am hoping the bills they earn will not be White for the ones, Pink for the fives, Yellow for the tens, Green for the twenties, Gray for the fifties, Goldenrod for the hundreds or Salmon for the five hundreds.


Apple: “Live long and prosper.” Bring on the html5, my head is in the cloud.

Posted by srplus at 7:25 AM 0 comments