The Federal Trade Commission is preparing to review allegations that Apple Inc. is engaging in anti-competitive tactics to restrict rivals in the mobile- advertising market, said people familiar with the matter.
The FTC and U.S. Justice Department have been discussing which agency should conduct the probe, one of the people said. Regulators earlier this week decided the FTC would proceed, the person said.
Regulators want to know whether moves by Apple will result in less competition in the growing market for ads on handheld computers. Spending on mobile ads in the U.S. is expected to reach almost $500 million this year, from $220 million in 2009, according to IDC.
Omar Hamoui, founder of Google Inc.’s newly acquired AdMob mobile-ad service, wrote in a blog posting yesterday that Apple issued rules that would prohibit developers “from using AdMob and Google’s advertising solutions” on Apple’s iPhone.
Peter Kaplan, an FTC spokesman, and Steve Dowling, a spokesman for Cupertino, California-based Apple, declined to comment.
Last month, the FTC postponed its decision on whether to approve Google’s $750 million purchase of AdMob. The delay was due to FTC concerns with conditions Apple was placing on software developers and advertisers for the company’s iAd program, according to two people familiar with the matter.
The iAd program generates revenue from ads placed on Apple’s handheld devices.
The FTC ultimately approved the Google-AdMob deal in part because of competition from Apple.
The Financial Times reported this morning that U.S. antitrust authorities are planning to investigate Apple’s conduct in the mobile-ad market.
Source: BloombergBusinessWeek
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