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Apple may face “major” antitrust lawsuit in the US

  • January 7, 2024
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The United States Department of Justice is in the “final stages” of an antitrust investigation into Apple, which could soon lead to an antitrust lawsuit. New York Times.

Apple may face “major” antitrust lawsuit in the US

The United States Department of Justice is in the “final stages” of an antitrust investigation into Apple, which could soon lead to an antitrust lawsuit. New York Times. The Justice Department could be poised to file a “major” antitrust lawsuit in the first half of 2024 as it examines how Apple’s control over hardware and software locks consumers into Apple’s ecosystem and makes it harder for rivals to compete.

Apple officials met with the Justice Department several times during the investigation, which covered everything from iMessage to the Apple Watch. Some of the topics covered are:

  • How does Apple Watch work better with iPhone than other smartwatches?
  • How Apple blocks iMessage competitors
  • How is Apple preventing other financial companies from offering one-time payment services similar to Apple Pay on “iPhone”?
  • Does Apple prioritize its own apps and services over apps provided by third-party developers?
  • How did Apple block cloud gaming apps from the App Store?
  • How Is Apple Restricting ‌iPhone‌ Location Services for Devices Competing with AirTag?
  • How Has App Tracking Transparency Impacted Advertising Data Collection?
  • In-app purchase fees collected by Apple.

Apple rivals such as Tile, Beeper, Basecamp, Meta and Spotify, as well as banks seeking access to the iPhone’s NFC features, are also in talks with antitrust investigators.

The Justice Department has not yet made a final decision on whether it will file a lawsuit, and Apple has not yet had a chance to have a final meeting to discuss the case before filing suit.

Apple and Microsoft are the only companies of the “big five” that do not currently face lawsuits in the United States for their business practices. Google, Amazon and Meta are facing the DoJ or FTC.

Apple has been defending itself against antitrust charges in the US for the past few years. In 2020, the US House Antitrust Subcommittee said Apple, Meta, Google and Amazon had “monopolies of the kind” last seen in the “Oil Age.” barons and railway magnates”.

While Apple argues that it does not have a dominant market share in any category in which it does business, the company also frequently touches upon the opportunities and business opportunities offered by the “App Store”. If the Justice Department decides to file an antitrust lawsuit, it would likely lead to years of litigation.

While Apple has so far avoided regulatory action in the United States, it is struggling with antitrust rules being implemented in the European Union. The Digital Markets Act (DMA) may soon force Apple to make a big move on its “App Store,” Siri, Messages, FaceTime and other services. For example, Apple is working on adding support for third-party app downloads to iPhones in Europe, a functionality we expect to see later this year.

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Source: Port Altele

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