In an article today, the New York Post is reporting that Apple may face antitrust scrutiny for FTC, Justice for the changes it made to its iPhone developer agreement.

Supposedly, Apple’s addition to its developer agreement section 3.3.1, which prohibits apps developed with cross platform tools kills competition by forcing developers to choose between creating apps that run only on Apple’s platform or creating apps that run on all the other platforms, like Android and Windows Phone 7 and Blackberries.

According to a person familiar with the matter, the Department of Justice and Federal Trade Commission are locked in negotiations over which of the watchdogs will begin an antitrust inquiry into Apple’s new policy of requiring software developers who devise applications for devices such as the iPhone and iPad to use only Apple’s programming tools.

The way I see it, it’s cross platform tools like Flash CS5 application packager that hampers competition and stifles innovation.

Generally, people are lazy. Doubly so for application developers. Nobody would do the whole job if they can do a third of the job for similar results.

If a tool existed that allows developers to target all mobile platforms with one project, that tool would most likely be very popular with developers and could possibly become the dominant way of creating mobile apps.

If Adobe’s tool become wildly popular, then it would definitely stifle innovation and hampers the competition between mobile platform creators. If it were very popular (and there is nothing that stops it from being popular if it worked on the iPhone), then Flash would become the platform. Developers would move from writing apps for the iphone platform to writing apps for the Flash platform.

Imagine if such a scenario came to be, that Flash’s platform became very popular. In such a scenario, if Microsoft were to introduce a new version of their Windows Phone 7 platform with some unique and very advantageous features, then those features couldn’t be used by the developers using Flash until Adobe implements support for them, ditto for Apple, ditto for Android, and ditto for RIM. If one of the target platforms doesn’t implement those features, whether Apple’s iPhone, Google’s Android or RIM’s Blackberry, then Adobe can’t implement them in their Flash platform because they wouldn’t work on all the target platform.

That would stop Microsoft from gaining much by innovating because it will be held back by the Flash platform. It would stifle Microsoft’s innovation [can't help giggling at the expression :) ].

A popular Flash platform would remove all the advantages of one platform over the others. It would only work to stifle each mobile platform’s innovations.

If Apple were a monopoly, which they aren’t in the smart phone business, then maybe the government should stop them from affecting the viability of other platforms. But they aren’t. If the government were to interfere with Apple’s business at this point, then it would be giving advantage to their competition. Remember that a monopoly is something that doesn’t have an effective competition. If you were to read anywhere online, you would find that RIM sells more smartphones than Apple and that Android is gaining market-share very quickly. This means Apple is not a monopoly.

The government’s job is to protect people from the abuses of a monopolist. It’s not their job to ensure one company’s success at the expense of another’s. It’s not their job to ensure that Adobe’s proprietary Flash platform is successful at the expense of Apple’s iPhone. Until the iPhone becomes an actual monopoly, the government has no business interfering on behalf of one company.