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Amazon Building its Own Linux-Based OS to Replace Android
(www.omgubuntu.co.uk)
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Linux is a family of open source Unix-like operating systems based on the Linux kernel, an operating system kernel first released on September 17, 1991 by Linus Torvalds. Linux is typically packaged in a Linux distribution (or distro for short).
Distributions include the Linux kernel and supporting system software and libraries, many of which are provided by the GNU Project. Many Linux distributions use the word "Linux" in their name, but the Free Software Foundation uses the name GNU/Linux to emphasize the importance of GNU software, causing some controversy.
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That is a great explanation of what vertical integration is. I am not sure I see why it is inherently bad.
I guess a large vertically integrated option could make it hard for alternatives to compete. That is more of a monopoly problem than a vertical integration issue though.
I do agree with interoperability requirements though. I see nothing wrong with Apple offering a fully vertically integrated product. The issue is when I cannot run my own OS on the hardware, my own apps on their OS, or interact with hardware from other vendors.
But that's exactly the problem. If the company is kind about it, or forced to play nice by effective regulation, there's no issue. But if there's no regulation and the company wants to, it tends towards monopolistic tendencies. And there's nothing that incentivizes a company to play nice forever, in fact they're incentivized to maximize profit. So Vertical Integration is bad without being checked.