Earlier quoted context omitted.
> This is entirely about protecting Apple's own interests and the comparison to Nintendo's lock down of the NES is not applicable. What I don't understand is how this isn't anticompetitive behaviour. By creating an app store and lock-in for application vendors, Apple become the only provider in the market. They now appear to be leveraging that monopoly to restrict another market, that of developer tools, to their com…
Because they don't have a monopoly on smartphones. They control their own platform, but as long as there's a reasonably competitive smartphone market out there, it's not illegal.
First, we have the hardware, and as you say, Apple is certainly in a competitive market with its iPhone offering.
Then, for each type of hardware, we have the software that runs on it. Anyone could write software to run on Apple's hardware, but because Apple lock down the phone and run the only app store in town, they have a de facto monopoly on the supply of software to iPhone users.
Finally, we have software development tools. Again, anyone could write tools to help software developers using Apple's hardware. Indeed, according to recent reports connected to this story, many people have, from Adobe's Flash CS5 team to fans of Haskell.
Again, I'm no lawyer, but I would expect that Apple would be perfectly within its rights to lock down the software that can run on its device, but would not be allowed to use that power to unduly influence the secondary market of how that software can be made.