Yep, the next chapter in the most blatant story of economic ignorance in history gets under way. Anti-trust, the American hallmark of self-destructive and senseless tyranny, is rearing its obnoxious head again - this time to aggravate Apple and AT&T.

The Department of Justice has started an informal review of the exclusive arrangements that limit handsets such as Apple’s iPhone to particular wireless communications companies, according to people familiar with the matter.

The inquiry follows consolidation in the US wireless industry that has left four operators accounting for more than 90 per cent of the country’s wireless subscribers. This has left them with the market power to carve out exclusive deals with makers of the most popular handsets, making it hard for smaller rivals to compete and leading to higher prices for mobile services, according to rivals. [emphasis added]

Hmmm, so the resources and market position that AT&T and Apple have earned should be sacrificed to the needs of smaller rivals? Only in altruist-collectivist-statist-wonderland.

Apple, as the creator and producer of the iPhone, has the right to sell it to whomever under whatever terms they choose. Likewise, AT&T has the right to distribute and market products of their choosing; also according to whatever terms they choose. In sum, Apple and AT&T have the right to work together under whatever terms they agree upon. Any law that trumps their right to do so is unjust, irrational, subjective law.

So long as a market is left free from Government intervention, new competitors will step in if prices are set higher than the market will tolerate. If AT&T’s exclusive contract to sell the iPhone is leveraged to charge more than the market will bear, other competitors like Google and Blackberry will have an opportunity to seize a share of the market. Apple’s rightful purpose in business is to make money, not to provide phones as a charitable cause. Likewise, AT&T’s purpose is to make money, not to dole out phone service to the needy. If any relationship between these two companies results in prices that are higher than what the market will bear, consumers will spend their money elsewhere.

Thanks you meddling idiots, but we can take care of ourselves - no brilliant Government intervention is necessary.

This entry was posted on Monday, July 6th, 2009 at 9:21 pm and is filed under Economics, Collectivism, Subjective Law, Idiots, Meddling, Collapse. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.