FCC Probes Apple, AT&T after Google App Rejected: Statement by Consumers Union
WASHINGTON, D.C. – Joel Kelsey, policy analyst for Consumers Union, the nonprofit publisher of Consumer Reports magazine, made the following statement today about the FCC’s inquiry into why Apple rejected the Google Voice software for the iPhone. The commission sent letters on Friday to Apple, Google, and AT&T, which is the exclusive U.S. carrier for Apple’s iPhone. Apple announced today that Google’s chief executive Eric Schmidt is resigning from Apple’s board.
Joel Kelsey: “Google found a way to offer many innovative calling services for free, plus cheap international calls. Network owners and cell phone manufactures may want to charge customers for these kinds of services. It’s not surprising that AT&T and Apple would try to block this innovative application from iPhone users, and that underscores the need for the FCC to take action to protect competition in the wireless marketplace. A competitive marketplace does not block innovations like this one.
"In the past, when carriers wanted to block an application, they would leverage their exclusive relationships with handset makers. Google and other software innovators have found a way to get over that hurdle, but their applications are still being blocked. If consumers don't like it, they face high switching costs and are forced to give up the investment they have made in their phone."
"It’s encouraging to see the FCC taking action by trying to get to the bottom of why consumers are being prevented from using this new service.”
