U.S. plans to file antitrust case against Apple for unfairly rigging iPhone’s market dominance

01/09/2024 / By Laura Harris

The Department of Justice is now in the final stages of an investigation into tech giant Apple, with plans to file a far-reaching antitrust case against it to stop the company from unfairly protecting iPhone’s dominance.

The lawsuit, which could be filed anytime during the first half of 2024, focuses on how Apple is using its control over its hardware and software to make it more difficult for consumers to leave and for rivals to compete.

Justice Department investigators are focusing on how Apple blocks non-Apple products from mixing with Apple tech while making the integration of Apple products with iPhone seamless.

Investigators are also focused on how Apple has blocked out the use of the iMessage service from non-Apple users and how Apple’s payments system for the iPhone is needlessly restrictive, blocking other financial firms from offering similar services. Investigators are also looking into how Apple blocks cloud gaming apps, which allow users to stream various video games on their phones, from being made available in the App Store.

Justice Department investigators also reportedly spoke with executives at the digital tracking firm Tile, which provides Bluetooth services, about Apple’s competing AirTag product and the company’s restrictions on integration with non-Apple products. Conversations with other banks and payment apps noted how Apple hinders their access to the tap-to-pay functions of iPhones.

The inquiry extends to how the Apple Watch functions more seamlessly with iPhones compared to other smartwatches. Garmin device users have reported difficulties in Apple forums regarding using their watches to reply to certain iPhone messages or adjust notifications. Moreover, investigators have scrutinized its fee policies for in-app purchases, a contentious issue raised by companies like Spotify and Match Group, which argue that the fees are anti-competitive.

Apple claims business practices necessary to make products better

Senior leaders within the antitrust division of the Justice Department are currently reviewing the investigation findings. Officials have engaged in multiple discussions with Apple, the latest being in December 2023. But as of now, no final decision has been made regarding whether a lawsuit will be filed or the specific charges it might include.

Apple has yet to present its case to the government in a final meeting, but it has defended its business practices.

The company explained that its goal is always to make things better for everyone involved, not just for the company but also for artists, creators, entrepreneurs and anyone with a big idea. Apple takes pride in how the iPhone brings together its hardware and software to make a smooth and easy experience for customers.

In 2020, Apple CEO Tim Cook told a Congressional antitrust committee that the iPhone changed the game in mobile phones with its easy-to-use features, simple design and high-quality ecosystem. He pointed out that Apple competes with other smartphone makers like Samsung, LG and Google, each offering a different approach.

“Apple does not have a dominant market share in any market where we do business. That is not just true for iPhone; it is true for any product category,” Cook said at the time.

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Watch this clip from Newsmax discussing how Big Tech companies like Meta are afraid of competition and antitrust laws.

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