I agree completely with the general proposition that APIs are similar to patents in the incentives it creates to open up data (similar to opening up knowledge) while retaining control through the T&Cs (similar to the monopoly granted through patent). The result is also similar in that APIs are spurring a wave of innovation just like we saw in the industrial revolution.
A few points worth bearing in mind:
1) There is no monopoly, so ultimately no API provider can abuse their power without limit
2) This is reinforced by the fact that the API interface itself cannot be patented (though some have tired and disputed it in courts), so one provider can be replaced by another
3) Nevertheless some API providers with strong market power (e.g. Twitter) have trampled on the rights of API consumers (even if they were legally within their rights as described in the T&Cs)
Ultimately it is up to us in the API community to recognize good API practices, and to bring down those API providers who abuse their power.
A few points worth bearing in mind: 1) There is no monopoly, so ultimately no API provider can abuse their power without limit 2) This is reinforced by the fact that the API interface itself cannot be patented (though some have tired and disputed it in courts), so one provider can be replaced by another 3) Nevertheless some API providers with strong market power (e.g. Twitter) have trampled on the rights of API consumers (even if they were legally within their rights as described in the T&Cs)
Ultimately it is up to us in the API community to recognize good API practices, and to bring down those API providers who abuse their power.