On last week's Motley Fool Money Radio Show, we talked about Apple's (Nasdaq: AAPL) decision to modify its developer agreements for the iPhone, iPod touch, and iPad. The move effectively bans developers from using Google's (Nasdaq: AAPL) AdMob advertising network, and AdMob's CEO cried foul over the move. Our team of analysts weighed in on Apple's latest offensive:
Seth Jayson: I think Steve Jobs might need to get ready for a close-up with the Feds. I don't normally love to defend Google, but I think Google had a fair point. Apparently, the developer agreement with iAd and the iPhone applications would exclude developers from working with a Google or another market force -- another force in the cell phone operating hardware or software system. It relegates developers to either choose between Apple's advertising platforms or some small third party. And of course, nobody is going to work with a small third party, because you have less chance of making money that way. It's a little anti-competitive. If you're an Apple shareholder and it works out, that's going to be great. I don't know if the Feds will let that go on forever.
Shannon Zimmerman: Meet the new boss, same as the old boss. Microsoft (Nasdaq: MSFT) used to face all of these challenges as well. Now its Apple's turn.
James Early: You can only play the game as long as we win.
Shannon Zimmerman: But Apple is playing it well. This is sort of antitrust bait, but they're pushing it as far as they can because they're the dominant force. They are writing the rules and they're enforcing the rules, and at some point, somebody is going to blow the whistle.
Seth Jayson: And their market share isn't so much yet that people have to be very worried. But the more successful they are, the more they are going to have to watch out.
You can hear more from the guys on The Motley Fool Money Radio Show. New shows get uploaded every Friday at 6pm.
