It seems to me
that the current attack on the excesses of capitalism is quite 'pick and mix' - a
symptom of unclear thinking and thoughtless (perhaps considered) hypocrisy. Over
here we are told by our monopoly purveyor of news that the Murdoch Press is a
bad thing because it threatens to become…a monopoly.
Margaret Hodge
fulminates and barnstorms in her role as chairwoman of the Public Accounts Committee
against such companies as Amazon and Google who legally avoid tax. Presumably
if they didn’t seek legal loopholes to avoid paying tax I would pay more for my
Amazon books…hmm. Difficult choice. Besides it’s a bit rich coming from
Margaret whose family firm Stemcor also ‘legally’ avoids paying tax in much the
same manner. The great majority, denied these opportunities, are encouraged to fulminate against carefully selected scapegoats, presumably to ease the pain and distract us from other areas of the establishment where tax avoidance is common.
Early tax avoidance ‘hate
figures’ proved easy enough targets. You could castigate Top Shop and shop somewhere
else. Similarly with Starbucks. Plenty of coffee shops. News Corporation proved harder. Its fight to
the death with the BBC reminding me of Godzilla Vs King Kong, and the banana
skin of an inaccurate report of a murdered girl’s hacked phone.
News Corporation
is down but not out. There may be a rematch. But what about Apple?
Remember the
outpouring of adulation and grief when its founder, Steve Jobs, died? Even now
Apple is seen as the epitome of cool, its products and outlets temples for the ‘must
have or I’ll die’ brigade. It is perhaps why there has been no widespread vilification
of Apple as there has been against the Murdoch press. It’s cool to own an iPad,
less so to read the News of the World.
But Apple and News Corp share the same shadow.
An email from the late Steve Jobs to James Murdoch of News Corporation illustrates this:
“Throw in with
Apple and see if we can all make a go of this to create a real mainstream
e-books market at $12.99 and $14.99.”
This email is
being used by the U.S Justice Department as evidence that Apple was ‘ringmaster’
in a price fixing conspiracy for e-books. Their intent was to force Amazon to
raise its e-book price from its standard $9.99 to the higher one favoured by
Apple and publishing giants like News Corporation owned Harper Collins. Two
days after that email Harper Collins signed an agreement with Apple to force
all e-book sellers to adopt to the new pricing model.
Random House held
out so Apple played rough using its power over apps to coerce it.
In July 2010, Steve
Jobs told Random House it would suffer a loss of support from Apple if it continued
to hold out and threatened to block an e-book application by Random House from
appearing in Apple’s App Store
.
Random House
eventually succumbed and in 2011 ‘Eddy
Cue, the Apple executive in charge of its e-books deals, sent an e-mail to Mr.
Jobs attributing the publisher’s capitulation, in part, to “the fact that I
prevented an app from Random House from going live in the app store.”
Amazon was next,
with talks of withholding books from the retailer until they accepted the
higher prices. In short Apple were seeking ‘Agency pricing’ allowing a small
monopoly of publishers to dictate price instead of the retailer.
Capitalism is
greedy. It's the nature of the beast - just don’t pick and choose - or worse - allow others to pick and choose for you. There are no saints – except perhaps Bill and
Melinda Gates - and even they have their critics.