New York
– Apple (NASD: AAPL) could face a federal probe into claims its new policy on developing
software for its iPhone and other devices is creating a monopoly in the space,
The New York Post reported, citing an unnamed source.

The source says that the
Justice Dept. and Federal Trade Commission are currently "locked in
negotiations over which of the watchdogs will begin an antitrust inquiry."

Apple recently banned third-party software development tools for its iPhone,
amid a public tiff with Adobe (NASD: ADBE) over its decision to keep the company’s popular
Flash platform off of the iPhone.

Adobe and others have said this constitutes anticompetitive
business practices.

The Post notes that, even if an inquiry is launched, that
does not mean any action would necessarily be taken against Apple.

All Things D
cited one legal expert who questioned whether the iPhone has dominant market
position, and whether a "walled garden" forbidding third-party development
software on the iPhone can be proven to negatively affect competition.


Related Links:

(N.Y. Post)
(All Things D)