A Natural Monopoly
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Comic Transcript
JIM WASHINGTON: It was a war that most people didn't notice: Online retailer Amazon.com pulled all of Macmillan Publishing's stock -- physical books, e-books, everything -- because Macmillan wouldn't agree to a price cap of just under ten dollars for e-books sold on the site.
JIM WASHINGTON: Ultimately Macmillan was victorious: Amazon agreed to Macmillan's price terms. Amazon released a statement explaining their decision stating "We will have to capitulate and accept Macmillan's terms because Macmillan has a monopoly over their own titles."
JIM WASHINGTON: In response to this statement, the entire world blinked in confusion, shrugged, then moved on to speculating over whether the iPad would make Netbooks obsolete.
NEWS TICKERTAPE: Breaking: Amazon accuses Barnes & Noble of having a monopoly over its own stores :: "Owning ever single B&N store is anticompetitive" Bezos says









Comments
Did this (or something very
Did this (or something very like it) -actually happen-?? If so, I'm also confused and staring with a definite o_O expression.
In fact,
the "Monopoly over their own products" is almost verbatim the phrase Amazon used to explain why they had to cave in to Macmillan.
Subversion of the iPhone
http://news.bbc.co.uk/2/hi/europe/8497291.stm
Somehow, I can see Ubersoft trying something like that. Maybe abuse Phil into writing it so it actually works?
Nothing new about that...
People have repeatedly objected that Apple has a "monopoly over their own products", most frequently people who are trying to sell Apple's intellectual property without their permission, like Psystar.
And, speaking from an accurate legal perspective, this is true. We routinely use the word "monopoly" as though it had the word "illegal" in the definition, but it just means "exclusive control of something". By definition, you have a monopoly on your own products. The name for the legal offense uses more than merely the word "monopoly", and requires that the control be over more than one's own goods. Yet another case of confusing connotation with denotation.
You're right, but...
... while you're 100% right about Apple, I dislike Steve Jobs so intensely I can't manage to dredge up any sympathy for him. A man whose first act coming back to a company is to screw over business partners who entered into an arrangement with the company in good faith (i.e. clone makers) deserves to be stolen from until the day he dies, and then a few decades after that.
Hear, hear!
I never saw it articulated so clearly and concisely, but that pretty much sums up how I feel about Apple and Steve Jobs.
There are two objections to that.
First off, the decision to kill off cloning was made before Jobs became CEO. He was just the figurehead who had to talk about it in public after Amelio left. At the time, I was following the soap opera which is Apple Computer in the tech press closely, and that was a done deal whether Jobs wanted it or not. (As I recall, he agreed with the decision, but that's not really relevant.)
The second thing is that the clone makers had explicitly agreed to not cannibalize Apple's own markets, and after a year they were doing exactly that. (The whole idea is that the clone makers would approach new markets, such as the business world, which traditionally considered Macs too expensive. They were supposed to build those stripped-down-but-expandable Macs that pundits are always so sure will succeed if only Apple would make them. As it turned out, they tried that and discovered that nobody wanted them, then started directly copying Apple's products and pushing them to existing users. I used to have an issue of Macworld from that era with an advertisement which boiled down to "why pay more for an Apple-branded computer when you can get our compatible machines for less?") The clone makers were hardly the bunch of innocents you make them out to be, and they were costing Apple more than they were bringing in in licensing fees.
(And also -- although this has no bearing on whether withdrawing from the clone agreements was justified or not, or done fairly -- frankly, the clones were no good. I bought a PowerTower Pro 225 from Power Computing back in fall of 1996. What they didn't tell consumers in advance is that outside of the CPU and ROM they were using cruddy components which had no driver support in the OS. Over the 6 years I kept that machine, I ended up spending roughly twice what I had saved by buying a clone in order to pay for upgrades to the third-party drivers which were necessary to safely keep using the internal hard drive and CD-ROM drive as the OS was updated. FWB made a mint through sales of CD-ROM Toolkit and Hard Disk Toolkit from anyone who bought a PowerTower Pro and who wanted to stay up to date, as all developers kind of need to do. And don't get me started on the Twin Turbo graphics card. Ick. In the end, I had to give the thing away instead of reselling it, because nobody would want to pay money for an old machine which required as much babysitting as that.)
I did not know that...
Thanks for clarifying the sequence of events. Nothing like the perspective of someone who was there, right in the thick of it...
I wonder if Apple first warned the clone makers that their practices were endangering their licenses, so they'd better shape up. But I suppose we'll never know...
I still dislike Apple's closed hardware designs and arbitrary app rejections. Not to mention their high prices, which the lack of open competition certainly helps to protect.
See http://www.washingtonexaminer.com/opinion/blogs/NateBeelerToons/The-Pric... for a chuckle about this... ;-)
rhl2000 is now our second
rhl2000 is now our second verified user in order to deal with the spam filter problem...
@Vicar
First, I disagree with your comment that "the clones were no good." During that time I had the opportunity to use a UMAX clone it was a fine machine. The people I knew who used UMAX generally preferred them to their old Apple machines.
Second, I was also following this at the time, because I was working in a company that was primarily a mac shop, and I was using BeOS (which was being considered as a replacement for Copeland at the time). And the chatter I saw was vastly different from yours. The Clone makers were credited for stopping the steadily dwindling numbers of mac users from jumping ship, and were further credited for making some gains -- but it was generally agreed it would take time to grow the market further.
Third, I never heard any rumors about the clone makers being dropped, or about any kind of requirement that the clone makers not sell clones to the current mac users. The news I had heard was that if Apple wanted to survive it had to get out of the hardware business and focus on improving OS9/Copeland/etc., which was aging in many important respects, while publishing hardware specifications the clone makers had to follow to be in the mac market. At the time this was happening that was what I heard from every mac supporter I talked to, which I'll say right out front is not a huge sample size compared to the total number of mac supporters.
Keep in mind the clone program was around for no more than two years. It had already made the Mac more accessible but it takes longer than that to make inroads in what was then an environment where Microsoft had a much tighter grip on the market than it has now. Jobs came in, said "I know you guys just renegotiated the OS license, but screw you, take a hike."
In my eyes he's still a complete and utter bastard. No sympathy here.
And did you have to keep using it?
Sure, the clones worked fine -- until you tried to upgrade the OS. Then you started to have buggy behavior and unsupported drivers, which could only be solved by forking over more cash, and more the next time, and so on. If all you had to deal with was a clone which someone else was taking care of -- or which you weren't going to have to upgrade yourself -- then they were fine, but then, those are the times when you were basically dealing with Apple's software, not some third party's hardware, right?
At the time of the clone makers, Apple was still on System 7, and that was indeed getting pretty decrepit. To give those of you who aren't Mac users some context, System 7.0 came out in 1991. The PowerPC Macs came out in 1994, running 7.1.2, which was the final 7.1 release. The clone era was 7.5 to 7.6, which doesn't sound so bad until you realize that they skipped all the numbers between 7.1.2 and 7.5. Copland (named after the composer, so there's no "e") was supposed to be Mac OS 8, and was going to be a rewrite of the Mac OS from the ground up to add a bunch of the low-level features missing from the Classic Mac OS (preemptive multitasking, protected memory, true multiuser support, etc.). They also had a team working on concepts for what would have been the successor to Copland, which was called Gershwin. (A lot of those concepts have been quietly added to the OS in one way or another, although not all of them stuck -- Themes got axed from the Appearance Manager, for example, and the Appearance Manager doesn't even exist in Mac OS X.)
The problem was that Copland never really got anywhere; every week, the development team would hold a meeting and say "okay, multitasking isn't working, and neither are any of the other big new features, so let's work on those for next week", and then they'd come back the next week and the 'progress' would be a few new icon designs, and there was never any accountability for that, so the whole project failed. They did release an alpha to the highest-tier paid membership of the developer program; it basically would crash as soon as you tried to run anything, including the included sample programs.
I agree with you that BeOS was great -- I kept the giveaway PowerPC RC2 (I think) install CD until I no longer had any PowerPC Macs around to run it on. BeOS is where all the fun went, really. And it was really, really fast. (And the open-source successor to it, Haiku -- which I strongly urge you to try if you can -- is still really, really fast, and is a treat to play with. I take every opportunity to plug it, because I'd really like it to succeed. Linux as a desktop OS is horrible; Haiku is terrific -- except that it has terrible hardware support, some incomplete parts, and basically can't be used as a server. But if you want to run a netbook, for example...) But it had two big problems: (A) it's a single-user system with no real user access control, just like "Classic" Mac OS, and (B) it was in the hands of Jean-Louis Gassee.
There was an interview with Amelio published a year or so after Apple bought Next where they asked why Apple didn't buy Be. What came out is that Gassee kept asking for more and more stuff because he thought he had Apple over a barrel. Gassee would ask for X amount of money and Y shares of Apple stock, in addition to a list of non-monetary demands. Apple would take that to the board, who would discuss it and agree, and then Gassee would ask for 1.5*X money and 2*Y shares of stock instead. After a few rounds of that -- and demanding that Apple put him (Gassee) in charge of everything -- they gave up on him. A pity, because BeOS was almost what Mac OS 8 should have been, except for the "still a single-user system" part. But in terms of deserving no pity, Gassee beats Jobs hands down.
It may indeed have required time to make inroads into the business world -- but the clone makers weren't even trying. Where were the clone Appleshare servers which would have been necessary? (Answer: nowhere.) Where were the stripped down clones? Oh, right, they gave up on those almost immediately because it was easier to compete with Apple.
As for renegotiation of the OS license: you do realize that if Apple had finished and released Copland, the clone makers would have had no license for that, right? Copland was always intended to be version numbered as OS 8, and the clone licenses only applied to 7.x. (That was how the destruction of the clone makers was really enforced; the non-Copland release version of Mac OS 8 was numbered 7.7 in developer releases up shortly before it was announced publicly.)
Verified User #2, "moi?" ;-) Thanks Chris!
I had a feeling I might again fall victim to your quirky spam filter (since it happened to me once or twice in the past).
Good idea, coming up with this verified status. Now let's see how well it works...