The U.S. Department of Justice (DOJ), along with 16 state and district attorneys general, sued Apple, accusing it of operating an illegal monopoly in the smartphone market.
The DOJ lawsuit is the latest action against Apple, with the U.S. finally joining ongoing regulatory efforts like what’s been happening in the EU.
According to The Verge, the DOJ accused Apple of increasing prices for consumers and developers and making users more reliant on the iPhone. It also claimed Apple “selectively” imposes contractual restrictions on developers and blocks certain important aspects of accessing the iPhone. Specifically, the DOJ says:
“Apple exercises its monopoly power to extract more money from consumers, developers, content creators, artists, publishers, small businesses, and merchants, among others.”
The lawsuit details several allegations about how Apple has maintained a monopoly. Some of the more notable ones include blocking cloud streaming apps for things like video games that would lower the need for better hardware, suppressing the quality of messaging between iPhones and Android devices, limiting the functionality of third-party smartwatches with the iPhone to the benefit of the Apple Watch, and preventing third-party developers from creating competitors to Apple’s Wallet app by limiting access to tap-to-pay functionality.
In a statement to The Verge, Apple spokesperson Fred Sainz said the lawsuit “threatens who we are and the principles that set Apple products apart.”
“If successful, [the lawsuit] would hinder our ability to create the kind of technology people expect from Apple—where hardware, software, and services intersect. It would also set a dangerous precedent, empowering government to take a heavy hand in designing people’s technology. We believe this lawsuit is wrong on the facts and the law, and we will vigorously defend against it.”
The DOJ’s lawsuit against Apple was years in the making, with reports dating back to mid-2019 that the department would handle antitrust investigations into the iPhone maker. Moreover, app developers have railed against Apple’s iOS and App Store policies for years, with some of the more vocal ones — like Spotify and Epic Games — taking Apple to court themselves.
Core issues raised by developers include that Apple’s App Store is the only place where iPhone users can download apps (Apple claims this is for security reasons, though notably many other platforms, including Apple’s Mac computers, don’t have similar restrictions) and Apple’s 15 to 30 percent cut of payments processed through its platform.
Apple will have its hands full as it defends against the DOJ lawsuit as well as contending with the EU’s new Digital Markets Act (DMA), which forced Apple to make numerous changes to the App Store in the region. Changes include allowing third-party app stores and opening up the iOS platform in various ways, though app developers have criticized Apple’s compliance with the new regulations.
Likewise, the DOJ will be busy as it continues legal battles with Google. The department is wrapping up closing arguments in a case about search distribution in May, with another trial over Google’s advertising technology starting in the fall.
Via: The Verge
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