Wednesday, July 6, 2011

The Federal Trade Commission is reviewing Internet messaging-service Twitter Inc. and its interactions with at least one other company that builds programs using Twitter data, according to a person familiar with the matter.
The precise focus of the review isn't clear, but representatives of the FTC's antitrust arm have requested information from a company called UberMedia Inc., which owns applications that let people read and send "tweets," or messages, broadcast by Twitter users, this person said.

Antitrust regulators are reviewing messaging-service Twitter and its interactions with a company that builds programs using Twitter data. Jen Valentino reports on digits.

UberMedia's chief marketing officer said in a statement on Thursday that the company was contacted by the agency and "we intend to fully comply with their request for information."
Twitter considers UberMedia to be a potential competitor, people familiar with the matter have said.
The review is "narrow" in scope and won't impact Twitter's fledgling advertising business, said the person familiar with the FTC review.
Spokesmen for Twitter and the FTC declined to comment. The agency's interest in Twitter was reported earlier Thursday by the Business Insider blog.
The FTC routinely examines companies to determine whether they are involved in anticompetitive behavior, often after receiving allegations from rivals. Often the reviews don't result in any legal action or penalty against the companies.
Twitter, which has more than 200 million registered accounts, lets people broadcast tweets of up to 140 characters in length and read tweets from other users. For much of Twitter's history, many users accessed the service through desktop and mobile-device applications developed by other companies rather than through Twitter.com.
Twitter has allowed those companies to access "tweets" generated by Twitter users, and those programs were vital to Twitter's growth because they helped people sort through, organize, and search for "tweets" in a way that Twitter couldn't.
But over the past year or so Twitter has looked to exert greater control over its user base as it has introduced advertising on its site. Twitter acquired some of those application companies, including TweetDeck, and developed its own services that rendered some other third-party companies obsolete.
UberMedia also tried to purchase TweetDeck, people familiar with the matter have said.
In February UberMedia, which owns Twidroyd and other applications that let people access and send tweets, said Twitter shut off its access to tweets because it believed UberMedia had violated "several provisions of their terms of service."
UberMedia said it worked with Twitter to resolve the issues, and service to those applications was restored.
At a recent conference, a Twitter employee noted that "with more people joining Twitter and accessing the service in multiple ways, a consistent user experience is more crucial than ever." The employee asked that app developers create apps that don't mimic Twitter's own mobile-device applications or Twitter.com.