Apple Could Soon Face 'Sweeping' U.S. Antitrust Lawsuit

[MacRumors]

The United States Justice Department is in the "late stages" of an antitrust investigation into Apple that could soon lead to an antitrust lawsuit, reports The New York Times. The DoJ could be ready to file a "sweeping" antitrust case in the first half of 2024, with the agency considering how Apple's control over hardware and software locks consumers into the Apple ecosystem and makes it difficult for rivals to compete.

Apple officials have met with the DoJ several times during the investigation, which has covered everything from iMessage to the Apple Watch. Some of the topics looked at:

• How the Apple Watch works better with iPhone than other smart watches do.
• How Apple locks competitors out of iMessage.
• How Apple blocks other financial firms from offering tap-to-pay services similar to Apple Pay on the iPhone.
• Whether Apple favors its own apps and services over those provided by third-party developers.
• How Apple has blocked cloud gaming apps from the App Store.
• How Apple restricts the iPhone's location services from devices that compete with AirTag.
• How App Tracking Transparency impacted the collection of advertising data.
• In-app purchase fees collected by Apple.

Apple competitors like Tile, Beeper, Basecamp, Meta, and Spotify have talked with antitrust investigators, as have banks that have wanted access to the iPhone's NFC capabilities.

The Department of Justice has not yet made a final decision about whether a lawsuit should be filed, and Apple has not yet had a chance to have a final meeting to plead its case before a lawsuit is filed.

Apple and Microsoft are the only "big five" companies not currently facing U.S. lawsuits over their business practices. Google, Amazon, and Meta are all facing off against the DoJ or the FTC.

Over the last several years, Apple has defended itself against antitrust accusations in the U.S. In 2020, the U.S. House Judiciary Antitrust Subcommittee said that Apple, Meta, Google, and Amazon have the "kinds of monopolies" last seen in "the era of oil barons and railroad tycoons."

Apple has argued that it does not have a dominant market share in any category where it does business, and the company also often cites the opportunities and jobs provided by the App Store. If the DoJ does opt to file an antitrust lawsuit, it will likely lead to a multi-year legal battle.

Though Apple has so far avoided regulatory action in the United States, it has been struggling against antitrust rules put in place in the European Union. The Digital Markets Act (DMA) could soon force Apple to make significant chances to the App Store, Siri, Messages, FaceTime, and other services. Apple is, for example, already working to add support for sideloading apps to iPhones in Europe, functionality that we are expecting to see sometime later this year.

Note: Due to the political or social nature of the discussion regarding this topic, the discussion thread is located in our Political News forum. All forum members and site visitors are welcome to read and follow the thread, but posting is limited to forum members with at least 100 posts.

Article Link: Apple Could Soon Face 'Sweeping' U.S. Antitrust Lawsuit

 

[drumcat]

This is such nonsense, at every turn. Tile can get lost. I used their products, and they were crap.

The rest of this is nonsense. DoJ smelling money, and nothing more.

 

[sigamy]

You Either Die a Hero or Live Long Enough to See Yourself Become the Villain

 

[swiftapplefan]

Being mad that Apple stops advertising trackers is just plain stupid now, the other points at least made sense…

 

[zubikov]

This shouldn't be viewed as Apple doing anything good or bad. If Apple wouldn't be here, another public company would gladly take their place.

This should be viewed a problem that a $3 trillion market cap company will eventually face. There's no good proxy for this size; not even standard oil. When a company grows this large, and is this successful, with such market concentration in so many segments, there will eventually be some antitrust action.

 

[Armeniandave]

While I would like a little more interoperability with messages the rest is by design and has been from the start. Apple likes to control the whole experience, for better or worse. That's how they have there competitive advantage.

 

[a m u n]

I prefer a walled garden approach. If I didn’t like a walled garden approach, I would switch to Android.

 

[Unregistered 4U]

The Department of Justice has not yet made a final decision about whether a lawsuit should be filed, and Apple has not yet had a chance to have a final meeting to plead its case before a lawsuit is filed.

This is the most important part. Immediately after filing, they’d have to start work against Sony and every other company that makes proprietary products. Which is why I don’t think it’s coming. They’re working, to be sure, but it’s a fine line to file anything that doesn’t put a target on the back of almost every other company that makes anything proprietary (including Tile).

The main reason why nothing has come forward in the US up to this point is that the adults eventually enter the room, realize how far reaching such a filing would be, and kill the effort.

The anti-trust investigation, which is necessary, is looking into what actions Apple has taken, either public or clandestinely, to force Apple’s hardware to have the sales it does. For example, illegal deals for software to be available exclusively on Apple platforms, purchasing competing handset makers then shuttering them, cutting deals with carriers so that they only carry the iPhone, etc.

 

[steve09090]

If the operating system is such a burden for the DoJ or any country, licence it out to other companies. And take 30% of the price of the sale. No reason to make it open source, but the operating system is the biggest influence on the device.

 

[johannnn]

How App Tracking Transparency impacted the collection of advertising data.

LOL! Please Apple, let the Internet track my data more! This is so unfair!

 

[DelayedGratificationGene]

Political grandstanding by clueless politicians trying to justify their jobs. It will go absolutely nowhere. Also amazing how the financial media all pile on with their FUD creation during certain opportune times like the first week of the new year. Such clickbait pathetic reporting.

 

[redbeard331]

Letting us jailbreak solves all that, give us the option.


I see some people disagree with this, can any of you explain why you’d rather have your phone locked down and owned by a mammoth and greedy corporation?


Sooooo nothing.

🍎🐑

 

[icanhazmac]

• How the Apple Watch works better with iPhone than other smart watches do.
  • Do Chevy engines work better with Chevys than Fords?
  • Or... does the Chevy Infotainment system work better with a Chevy than a Ford?
• How Apple locks competitors out of iMessage.
  • No one is "locked out", Apple simply doesn't have app for other platforms. Platform independent apps exist in good numbers.
• How Apple blocks other financial firms from offering tap-to-pay services similar to Apple Pay on the iPhone.
  • Fair enough
• Whether Apple favors its own apps and services over those provided by third-party developers.
  • Who doesn't? I am sure most consumers know how to find apps that provide additional functionality if the Apple app doesn't provide.
• How Apple has blocked cloud gaming apps from the App Store.
  • Fair enough
• How Apple restricts the iPhone's location services from devices that compete with AirTag.
  • Fair enough, not sure if this is anti-competitive or protecting customer location data
• How App Tracking Transparency impacted the collection of advertising data.
  • Shouldn't user privacy come first?
• In-app purchase fees collected by Apple.
  • All retailers mark up.

 

[dominiongamma]

This is such nonsense, at every turn. Tile can get lost. I used their products, and they were crap.

The rest of this is nonsense. DoJ smelling money, and nothing more.

You can complain all you want, but reality is coming and Apple has a rude awakening if they think after the EU they will be able to get away what they have for any longer. All they had to do is loosen up some of their policies up, they wouldn’t be in this mess.

 

[dominiongamma]

• How the Apple Watch works better with iPhone than other smart watches do.
  • Do Chevry engines work better in Chevys than Fords?
• How Apple locks competitors out of iMessage.
  • No one is "locked out", Apple simply doesn't have app for other platforms. Platform independent apps exist in good numbers.
• How Apple blocks other financial firms from offering tap-to-pay services similar to Apple Pay on the iPhone.
  • Fair enough
• Whether Apple favors its own apps and services over those provided by third-party developers.
  • Who doesn't?
• How Apple has blocked cloud gaming apps from the App Store.
  • Fair enough
• How Apple restricts the iPhone's location services from devices that compete with AirTag.
  • Fair enough, not sure if this is anti-competitive or protecting customer location data
• How App Tracking Transparency impacted the collection of advertising data.
  • Shouldn't user privacy come first?
• In-app purchase fees collected by Apple.
  • All retailers mark up.

I thought Apple was all supposed to be about gaming now, but they block cloud gaming. I never got their position on that, it makes Apple look out of touch with the future with cloud gaming

 

[latweek]

This is such nonsense, at every turn. Tile can get lost. I used their products, and they were crap.

The rest of this is nonsense. DoJ smelling money, and nothing more.

DOJ doesn't "make money" either way, but Apple sure does. You can't be this naive, or is it reflexive projection?

 

[hagar]

It’s weird how so many Americans are crying wolf when their (or any) government wants to address issues that are consumer unfriendly.

This whole obsession with ‘small government’ is getting out of control. Without decent legislation, controls and checkpoints you end up with monopolies exploiting workers, consumers and the environment.

I have Apple stock so this is bad for me, but if it levels the playing field and free market, I’m all for it.

 

[tgwaste]

We CHOOSE to be locked into the system. No one is forcing me to buy Apple products, least of all Apple.

 

[jarman92]

• How Apple blocks other financial firms from offering tap-to-pay services similar to Apple Pay on the ‌iPhone‌.

How is this a thing? What functionality could "financial firms" possibly want that they don't get with the current setup?

 

[Unregistered 4U]

Consider: Android exists as the non-Apple option due to Apple’s insistence on being closed. (There are specific high-end feature phones with different physical features, but the mass market all look like iPhones)

What would be the real world impact of iPhone marketshare if the iPhone were to become more open like Android? There’s really no down side for Apple, the problem would simply become how many new factories would need to come online to fill the need.

 

[tgwaste]

It’s weird how so many Americans are crying wolf when their (or any) government wants to address issues that are consumer unfriendly.

This whole obsession with ‘small government’ is getting out of control. Without decent legislation, controls and checkpoints you end up with monopolies exploiting workers, consumers and the environment.

I have Apple stock so this is bad for me, but if it levels the playing field and free market, I’m all for it.

Thanks for your sacrifice. Communism and Socialism doesn't work.

 

[maxrest]

BS after BS. Let Apple do their thing.

 

[Channan]

• How the Apple Watch works better with iPhone than other smart watches do.
• How Apple locks competitors out of iMessage.
• How Apple blocks other financial firms from offering tap-to-pay services similar to Apple Pay on the iPhone.
• Whether Apple favors its own apps and services over those provided by third-party developers.
• How Apple has blocked cloud gaming apps from the App Store.
• How Apple restricts the iPhone's location services from devices that compete with AirTag.
• How App Tracking Transparency impacted the collection of advertising data.
• In-app purchase fees collected by Apple.

#2 is a non-issue. It’s their service for their devices. And #7 only benefits us. I’m for a lot of these things being looked into, but #2 and #7 I’m with Apple 100%.

 

[dominiongamma]

We CHOOSE to be locked into the system. No one is forcing me to buy Apple products, least of all Apple.

And Apple should stop playing the kid company and grow up, they were once viewed as a tech serious company, we are adults we should be able to choose what we let on our phones and computers.

 

[the future]

The stupidness of all of this boils down to defining Apple‘s ecosystem/platform as a „market“ in which everyone is entitled to compete. The competition ought to be between ecosystems/platforms (in Apple‘s case: Mac vs. Windows/Linux, iOS vs. Android etc.) If Apple was sabotaging other ecosystems/platforms, they should be punished; but they don‘t. And how could they: they don‘t have anything approaching a monopoly in any of the markets they compete in. All those leeches like Spotify, Tile, Epic et al. just want to reap what Apple has sown by building their ecosystem from the ground up for two decades now. So much easier than to build their own, I guess.