Fcc Opens Probe Into Apple Rejection Of Google Iphone Program


Apple

In letters sent yesterday, the FCC asked whether Apple consulted with AT&T Inc., the exclusive U.S. wireless-service provider for the iPhone, when deciding to reject the application and whether AT&T has any role in approving iPhone software.

Google, owner of the worlds most popular search engine, said this week that Apple rejected its request, submitted six weeks ago, that the Google Voice application be made available on the iPhone. Google Voice lets users place U.S. calls, send text messages and organize voice mails without charging fees.

Apple is the sole source of distribution for iPhone programs, which are offered through the online App Store it opened in July 2008. More than 65,000 programs are available. Apple declined to say why the request was denied or comment on the FCC inquiry, said Steve Dowling, a spokesman for the Cupertino, California-based company.

Google, based in Mountain View, California, fell $2.59 to $443.05 yesterday in Nasdaq Stock Market trading. Apple rose 60 cents to $163.39, while AT&T lost 11 cents to $26.23 on the New York Stock Exchange.

The government is seeking more information about Apples decision because of its interest in wireless open-access and exclusivity deals between handset makers and carriers, according to the letter sent to Apple by James Schlichting, acting chief of the FCCs Wireless Telecommunications Bureau.

Aug. 21

The three companies have until Aug. 21 to respond.

“Are there any contractual conditions or non-contractual understandings with AT&T that affected Apples decision in this matter?” Schlichting asked Apple.

AT&T received the letter and will respond, said Fletcher Cook, a spokesman for the Dallas-based company. “AT&T does not manage or approve applications for the App Store,” Cook said, and referred questions to Apple.

“We will be supplying the information that the commission has requested,” Katie Watson, a spokeswoman for Google, said in an e-mailed statement.

Jen Howard, a spokeswoman for the FCC, declined to comment further.

More FCC Probes

Apples iPhone applications have helped it gobble up market share and buoy profit at AT&T. Google Voice, unveiled this year, works on other smart phones, such as Research In Motion Ltd.s BlackBerry and devices running the Android operating system from Google. Like the services offered by EBay Inc.s Skype and Vonage Holdings Corp., Google Voice uses the Internet to transmit calls. Users can also make low-cost international calls with Googles software.

FCC Chairman Julius Genachowski said July 30 his agency will consider if innovation is promoted or hindered by exclusive industry arrangements such as those that limit the iPhone to customers of AT&T and Palm Inc.s Pre to Sprint Nextel Corp. subscribers.

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