iPhone users are likely to be the unintended victims of some current antitrust activities: The US Department of Justice and some state attorneys general are targeting Apple’s contracts with Google. The contracts have Apple preinstalling some Google apps and making Google Search the default search engine on iPhones. Several state legislatures and the European Union are targeting Apple’s App Store for the commissions it charges.
If these government officials get their way, iPhone prices will rise. Why? Because the governments would cancel network effects.
Read Dr. Jamison’s complete blog post at AEI.