According to the New York Times, Apple’s use of Apple Maps, a decision substituting its own mapping software for rival Google’s in the iPhone 5 and the new iOS 6 operating system, appears to be a textbook case of what’s known as a tying arrangement, sometimes referred to as “bundling.” In bundling, the purchase of one good or service (the iPhone) is conditioned on the purchase or use of a second (Apple maps). Such arrangements extend the control of a dominant producer, thus violating antitrust laws. The best example of which is Microsoft’s attempt to bundle its Internet Explorer browser on Windows software, to the disadvantage of Netscape.
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