did Steve consult the legal department?
Maybe there is confusion because Steve consulted with the Apple lawyers and they told Steve the new pollicy is illegal.
Why would the new policy be illegal?
I can explain just as the Apple lawyers explained to Steve.
Why is Apple's Subscription policy illegal?
All you have to do is understand why Apple adopted the policy.
It was designed to preclude competition.
1.alternative music services can not possibly afford to pay the 30% cut demanded by Apple. That precludes them from servicing Apple customers. They may not even know alternative services exist. Monopoly to iTunes.
2.all alternative sources for media must charge the same high price as by Apple. That means that Apple is assured of always having the lowest or best price for all media on Apple products. In other words, the only way to compete with Apple on price is to not make such media available to Apple users. Again, monopoly to Apple.
Apple consumers remain ignorant to the both the high prices they are being charged and the availability of alternative services provided by Apple.
Nothing is more antitrust than that. Preclude the competition completely or prevent them from offering any better price or terms, etc. Every company in the industry would love to pull that off if they could.
And only those companies having substantial monopoly power can do it. Some of that power comes from iTunes and its dominance in the marketplace. Dominance insured by making sure alternative services do not appear on Apple. And some of that power comes from iPhones and iPads. Currently iPhones have alternatives in the marketplace. But, no iPads. At least not yet. So Apple thinks it is essential to get media companies signed up now before those Android tablets get established in the marketplace. Once in place, some media companies will stay (as opposed to drop services to Apple customers).
The policy is designed to preclude alternatives and to keep prices high for media services.
And, worse yet, the high Apple prices will affect even those customers who do not have Apple products. If media suppliers can not sell for less through their own means or through other means, even Amazon, Google or others would have to charge the higher prices caused by the 30% tap by Apple. Trying to force media companies to charge high prices keep Apple competitive even though it insists upon higher prices or a big fat percentage for what amounts to a simple processing service. Apple does nothing but transact the business for its cut of the media pie. No advertising. No promotion. No kind of guarantee. No stocking of merchandise. No even serving up the media. Media companies have to do everything they do know on their own services regardless how customers are signed up. Apple just wants to force media suppliers to pay them 30% for essentially nothing. Okay, they host the small app that allows the customer to subscribe. And they process the payment. Nothing else.
And due to the restrictions they want to impose upon everyone else, Apple customers remain blind to the high prices they are being charged for media. Lower prices can not be offered anywhere or anyhow or Apple customers can not sign up for the media via Apple. So Apple customers are kept blind and ignorant.
Google has said they will only charge 10% and they will not restrict media suppliers outside of the Google system. 10% may still be too high but at least it not an attempt by Google to preclude competition among Apple customers and causing higher prices for everyone from any vendor who chooses to be placed on Apple.
Consumers have a right to alternative sources of information, media or what have you. And they have a right to be free of costs levied by a monopolist. Or, any company that refuses to give their own customers a competitive price. A high price everywhere is not competitive. Competition has been eliminated. Or, at least that is what Apple wants to impose upon Apple customers.
Nothing is more harmful to your own customers. Keep the prices high and restrict availability of alternatives sources. And take a 30% cut for doing almost nothing at all.