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It’s no little-known fact that Apple is one of the biggest companies in the entire world, and this makes it a big target for antitrust lawsuits. Well, this is what’s happening now between the American Department of Justice (DOJ) and 16 State Attorneys General. The US DOJ has filed a massive lawsuit against Apple over monopolizing the smartphone market.
This is the second massive anti-competitive lawsuit the DOJ has filed against a tech company in recent history. Very recently, the DOJ sued Google for operating an illegal Monopoly. The case has since wrapped up, but the ruling will come in May this year.
The DOJ files a massive lawsuit against Apple
This lawsuit came about because of Apple’s dominance in the smartphone market. In a press release, the DOJ stated “Apple undermines apps, products, and services that would otherwise make users less reliant on the iPhone.” This is what most people refer to as the ecosystem lock-in. This is where a company does everything it can to lock a customer into one specific ecosystem and not stray away. “Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others” the statement continues.
This is a case that we should have seen coming as Apple has come under scrutiny from several companies including Epic Games and Spotify over its handling of the App Store. Recently, Apple came under fire for blocking music streaming apps on the App Store from offering cheaper services through different payment systems. Also, Apple has long blocked third-party app stores from being implemented into iOS.
Messaging
This lawsuit extends far beyond apps and the App Store. It also involves the way iOS handles messaging between iPhones and Android devices. The DOJ alleges that the messaging experience between iPhones and Android devices has been greatly diminished compared to the messaging experience between iPhones.
One example that was given was the fact that media shared from an iPhone to an Android device is extremely grainy. Also, we can’t forget about the whole green bubble versus blue bubble war that’s been going on.
Accessories
In the lawsuit, the DOJ alleges that Apple makes its devices seem more appealing on the iPhone by diminishing the experience of third-party devices. For example, allegedly, Apple restricts the functionality of third-party smartwatches in order to make its Apple Watch look more appealing. Another example has to do with air tags and third-party trackers. These devices have limited access to the iOS software, so they’re not as effective or usable as Apple’s first-party devices.
Obviously, Apple is going to fight this
“[This lawsuit] threatens who we are and the principles that set Apple products apart in fiercely competitive markets,” stated Apple spokesperson Fred Sainz, “We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it.”
In a case this big, obviously, Apple is going to defend itself in court. The lawsuit aims to bring Apple into the light over allegedly malicious and predatory practices. Well, if Apple has to change the way that it operates, it could potentially compromise its position as the largest tech brand. However, it’s much more important that proper competition thrive than one company being able to dominate.
This is a developing case
Right now, we’re at the beginning of what could be a very long case. We have no idea if it’s going to last for months or even over a year. Information about this case is going to arise as time goes on, so stay tuned for more information on this case. It could have major ramifications for Apple and the tech world at large