I don't know about inevitable, but price regulation would not be the best outcome here.
My hope for this is to see regulation that recognizes that hardware, operating systems, application distribution and payment processing are four separate markets and must be unbundled.
That does not mean breaking Apple and Google up or preventing them from providing all these things within an integrated user experience; it should however prohibit:
- using technical or legal methods to prevent consumers from installing any operating system or app store on their hardware, and independent developers from creating such operating systems or app stores.
- using technical or legal methods to prevent developers from using a payment processor of their choice while using Apple's or Google's application distribution service.
I think the judgements against Microsoft in the browser wars might serve as precedent.
The tricky part is recognizing that in two-sided markets, the threshold of market share at which a company achieves a harmful, competition-stifling amount of market power is much lower than in traditional one-sided markets.
My hope for this is to see regulation that recognizes that hardware, operating systems, application distribution and payment processing are four separate markets and must be unbundled.
That does not mean breaking Apple and Google up or preventing them from providing all these things within an integrated user experience; it should however prohibit:
- using technical or legal methods to prevent consumers from installing any operating system or app store on their hardware, and independent developers from creating such operating systems or app stores.
- using technical or legal methods to prevent developers from using a payment processor of their choice while using Apple's or Google's application distribution service.
I think the judgements against Microsoft in the browser wars might serve as precedent.
The tricky part is recognizing that in two-sided markets, the threshold of market share at which a company achieves a harmful, competition-stifling amount of market power is much lower than in traditional one-sided markets.