Apple Facing Imminent U.S. Antitrust Lawsuit

[sw1tcher]

I wish the regulators would go after the real problems in the tech space - Meta and Alphabet

They have been.

Facebook Faces New Antitrust Lawsuit (Published 2021)

The suit, filed by the now defunct photo start-up Phhhoto, accused the social network of stalling on a deal and then putting it out of business.

www.nytimes.com

United States takes on Google in biggest tech monopoly trial of 21st century

The biggest antitrust trial in nearly 25 years kicks off on Tuesday as the Justice Department makes its case that Google is an illegal monopoly.

www.npr.org

 

[jimbobb24]

Always love the biggest inescapable monopoly telling other tiny entities what a bad bad monopolist they are. Sure...

 

[magamo]

News like this makes me want some Apple products to not become too popular. I like how Studio Display is seamlessly integrated into the Apple ecosystem. But if it becomes extremely popular, which I don't think is ever gonna happen, suddenly it's an easy mark of antitrust lawsuits.

 

[Sophisticatednut]

The United States Justice Department is preparing to sue Apple for violating antitrust law as soon as Thursday, reports Bloomberg. The lawsuit will be the culmination of an investigation that initially started in 2019 as an antitrust review of major technology companies. U.S. regulators have already sued Google, Meta, and Amazon.

Over the last several years, Apple officials have met with the DoJ multiple times, and the investigation has covered everything from iMessage to ad practices. Some of what the DoJ has looked into:

• How the Apple Watch works better with iPhone than other smart watches do.
  
• How Apple locks competitors out of iMessage.
  
• How Apple blocks financial firms from offering tap-to-pay services similar to Apple Pay.
  
• 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 had discussions with antitrust investigators to voice their complaints about Apple's practices, as have big banks. According to Bloomberg, the DoJ plans to argue that Apple has used illegal practices to maintain a dominant market position, blocking competitors from hardware and software features on the iPhone.

Back in 2020, a United States House Judiciary Subcommittee investigation concluded that Apple, Meta, Google, and Amazon have the "kinds of monopolies" last seen in "the era of oil barons and railroad tycoons." The subcommittee recommended new antitrust law, but the DoJ opted to target Google before going after Apple because Apple was embroiled in an antitrust lawsuit with Epic Games.

Apple in iOS 17.4 had to make sweeping changes to the way the App Store operates in the European Union to comply with the Digital Markets Act, and it was also recently fined $2 billion in Europe for anti-competitive behavior against rival music services.

Article Link: Apple Facing Imminent U.S. Antitrust Lawsuit

But, I thought it was unfair for governments to make new laws… my free market is threatened. Apple should announce that they are pulling out from the USA!!!

 

[Apollo68]

Always love the biggest inescapable monopoly telling other tiny entities what a bad bad monopolist they are. Sure...

Tell me you're an anarchist without saying you're an anarchist.

 

[Apollo68]

News like this makes me want some Apple products to not become too popular. I like how Studio Display is seamlessly integrated into the Apple ecosystem. But if it becomes extremely popular, which I don't think is ever gonna happen, suddenly it's an easy mark of antitrust lawsuits.

uh, what? That literally is not how antitrust law works.

 

[Harry Haller]

I wish the regulators would go after the real problems in the tech space - Meta and Alphabet

What problem is that?

 

[jimbobb24]

So if a company flagrantly violates the law and the DoJ goes after them, the DoJ is arrogant. got it.

Not saying apple is doing so, but if they are, there should be consequences.

As I said this idea of the "laws" defining monopolies is pure delusion. This isn't a speeding ticket. It takes years and desire to even decide there was a "violation". This far less about clear lines of violation and always much more about "doing something". In the US we have had almost no real monopolies except ATT and they were not defeated by the endless govt lawsuits but by technology.

 

[Harry Haller]

As I said this idea of the "laws" defining monopolies is pure delusion. This isn't a speeding ticket. It takes years and desire to even decide there was a "violation". This far less about clear lines of violation and always much more about "doing something". In the US we have had almost no real monopolies except ATT and they were not defeated by the endless govt lawsuits but by technology.

Microsoft has entered the chat.

 

[SmugMaverick]

How DARE the EU tell an AMERICAN company what to do!!!!

Apple should pull of out the EU and watch them BEG Apple to return.

LAUGH MY £&@“*^# A&£ off

 

[Apollo68]

As I said this idea of the "laws" defining monopolies is pure delusion. This isn't a speeding ticket. It takes years and desire to even decide there was a "violation". This far less about clear lines of violation and always much more about "doing something". In the US we have had almost no real monopolies except ATT and they were not defeated by the endless govt lawsuits but by technology.

Aww, standard oil is feeling left out by your factually incorrect statement.

 

[AlexESP]

Agree!
Let companies create the product they want and let me as a customer choose the product I want.

I may want a Spotify app that allows for in-app subscription management.
Without costing an arm and a leg in unnecessary transaction fees and commissions.
And Spotify seems to agree to want to create that product.

👉 So let Spotify create the product (app) in which I can pay directly with my credit card - and me choose that product.

Spotify can create whatever app they want, it’s their product. Same for Apple, they have their iPhone, and they decided:
1. That everyone can develop for it (they could have decided against).
2. Rules to develop for it.
So if Spotify wants to sell something on Apple’s platform, they have to comply.
Some other examples:

• I can’t advertise my show in a competitor TV channel.
• I can’t install apps on my fridge.
• I can’t sell music on my own terms in Spotify

 

[xmarcuswildx]

Time to play some puts.

 

[BuffyzDead]

They do once you buy a device. The app store is definitely a monopoly in the US.

Not True.

Here are 6 apps that I have purchased, as in given actual money, to use on my iPhone . None, as in Zero dollars, were purchased from Apples "App Store" (which is actually acting as a distribution center, NOT a store since store implies a purchase. and there are hundreds of thousands of FREE apps for which no money is ever provided)

MLB for $30.00 purchased from their website from a computer
Strava for $80.00 purchased from their website from a computer
LoseIt! for $29.00 purchased from Google Play Store
Peacock for $5.00 per month purchased from Peacock Online store
YouTube TV purchased from Google online
Max purchased from Max online
and about a dozen free apps, downloaded from the Apple App Store, for which I have never paid a nickel.

Explain the monopoly in this context ???

 

[Apollo68]

Spotify can create whatever app they want, it’s their product. Same for Apple, they have their iPhone, and they decided:
1. That everyone can develop for it (they could have decided against).
2. Rules to develop for it.
So if Spotify wants to sell something on Apple’s platform, they have to comply.
Some other examples:

• I can’t advertise my show in a competitor TV channel.
• I can’t install apps on my fridge.
• I can’t sell music on my own terms in Spotify

I can install apps on my fridge, and I can negotiate terms with spotify to be generally favorable to my interests.

 

[jimbobb24]

I think it’s funny that everyone here seems to think this is about consumers. It’s not about you.

It’s about other businesses and their ability to compete in marketplaces to ensure a strong US economy and large workforce (jobs).

It's also about politicians wanting more control, answering lobbyists, being able to make stump speeches about how they are fighting silicon valley, using these threats as methods to increase donations to political campaigns. Lots going on here.

However, can consumers be harmed and the market improve? I am not sure that is theoretically even possible.

 

[AlexESP]

The only reason you think it's insane is because you and others don't grasp that these are the kinds of things anti-trust laws are supposed to prevent. And you as well as others will continue to think it's insane until you recognize this.

We recognize those are the kind of things it’s trying to prevent. And we think it’s “insane” (maybe some other word) because that’s not something that should be prevented.

 

[sjsharksfan12]

More like tomorrow, at least according to Bloomberg:

Maybe it didn't come across through text, but I was joking, considering that same imminent word was used in another article just a few days ago about updating new IOS Software which we still haven't gotten yet.

 

[BuffyzDead]

This is really about the mobile operating system of which there are only two major players: iOS (which has the largest share in the U.S.) and Android. Besides, just because there are alternatives doesn't mean antitrust laws wouldn't apply or there couldn’t be a monopoly. Microsoft was declared a monopoly in computer operating systems in 1999 even though there were alternatives like Mac OS, OS/2, Linux, BeOS, etc.

because Microsoft had 98.9% share of the market!
Apple does Not !

 

[vladi]

• How the Apple Watch works better with iPhone than other smart watches do.
• How Apple locks competitors out of iMessage.
• How Apple blocks financial firms from offering tap-to-pay services similar to Apple Pay.
• 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.

Man, I hate this garbage. Sure as a consumer, it be nice to have some of this stuff more open, but this is Apples product. The government attempting to control how they operate it is insane. It's not like there isn't an alterative to iOS and the Apple Ecosystem. If I ever created an incredibly successful business like Apple I would want to be able to operate it how I please. This is nuts.

Can't you see the pattern down the road? You might laugh now but if this bullet list continues to go on one day you will be forced to be an Apple Bank customer in order to pay for anything on their devices cause they would not be accepting payments from any other bank issued card. That's exactly how taking advantage of monopoly works.

 

[xmarcuswildx]

Stunts like this are what cause company's like Apple to leave and go to other countries that are happy to have jobs for people just saying .

Yeah… where to the EU?

 

[AppliedMicro]

So if Spotify wants to sell something on Apple’s platform, they have to comply.

...as long as Apple's terms aren't (illegally) unfair and anticompetitive - which they've been found in the EU and the US.

 

[1129846]

Not surprised honestly. Just surprised this hasn't happened sooner.

Long over due honest.

Amazon, Apple and Google have long needed to be hit with some anti trust. They all are massively abusing their position in their respective markets.

 

[crees!]

This is really becoming a sh*t-show with all this gov’t interference

 

[AlexESP]

I can install apps on my fridge, and I can negotiate terms with spotify to be generally favorable to my interests.

Clear, so… you can install apps on your fridge because its company allows it (mine doesn’t, and it’s ok). And you can only sell in Spotify after that gatekeeper agrees with it; if they don’t, you can’t. And what is the difference with Apple’s case?