On March 21, the United States Justice Department sued Apple for antitrust violations, concluding a multi-year investigation into Apple's business practices. The U.S. government is also pursuing antitrust cases against Google, Amazon, and Meta, as part of an expansive look into the practices of major tech companies.
Apple plans to "vigorously defend" against the DoJ's lawsuit, which seeks to fundamentally change the way that Apple operates. This will be a legal battle that spans multiple years, and we'll keep this guide updated with the latest news as the case progresses.
DoJ's Claims
The lawsuit that the DoJ filed against Apple is broad ranging, and rather than focusing on one or two issues, it aims to establish a long-running history of anti-competitive behavior. The DoJ tries to establish a pattern of business decisions that have suppressed competition, with the DoJ arguing that Apple has time and time again opted to "make its products worse for consumers to prevent competition from emerging."
It is the opinion of the DoJ that Apple has gotten consumers "hooked" on its platform through these choices, making it unreasonably difficult for customers to switch to another smartphone brand. There is no allowance made for customer preference and the idea that people simply like their iPhones - the DoJ positions Apple as a monopolist that has manipulated people into sticking with its ecosystem by blocking competing apps, services, and products.
Suppressing Technologies
While the full lawsuit details a long list of ways Apple has allegedly harmed consumers, the DoJ cites five specific examples of Apple blocking technologies that it claims would decrease barriers to switching and give consumers a "higher-quality user experience on any smartphone."
The DoJ is of the opinion that if Apple did not historically limit cloud gaming, digital wallets, and non-Apple Watch smartwatches, that people would freely choose to purchase less expensive alternative smartphones over the iPhone. The DoJ believes that Apple is not facing pressure from "innovative, cross-platform technologies" because Apple "makes other products worse" rather than making its own products better.
- Super apps - The DoJ defines super apps as those that provide a user with "broad functionality" in a single app and have the benefit of providing a consistent user experience across devices. An example of a super app is WeChat, which is widely used in China for communicating, making payments, and more. The DoJ says that Apple has "denied users access to super apps" in the U.S., but it is worth noting that there is a cultural aspect to these apps, and they just haven't caught on in the U.S. the way they have in China. Mini apps are often frequently referenced too, as Apple did have restrictions on apps offering mini games and other multi-app features (these restrictions were eliminated in iOS 17.4).
- Cloud streaming - The DoJ suggests that Apple is suppressing cloud streaming games by preventing them from being available on the App Store. Cloud streaming apps have been usable on Safari, and as of iOS 17.4, Apple changed its rules to allow streaming game apps like Xbox Cloud Gaming to offer streaming games through a single App Store app. This argument is no longer entirely relevant, but the DoJ believes that by not allowing cloud gaming apps, Apple prevented consumers from buying cheaper phones. The idea here is that customers had to opt in to expensive iPhones to play "high-compute" games because they weren't available to play using cloud services.
- Messaging apps - The DoJ thinks that third-party apps should be able to send and receive SMS messages, rather than these messages being routed to the Messages app. This would let users switch phones without changing the way they communicate. The filing takes issue with the lack of an iMessage app for Android, Apple's efforts to block the Beeper Mini app, green bubbles, and the adoption of RCS.
- Smartwatches - Apple suppresses key functions of third-party smartwatches, preventing iPhone users from getting Apple Watch-like functionality from smartwatches with "better user interfaces and services." The DoJ says that Apple locks customers in to the iPhone with the Apple Watch, because the Apple Watch can't be used on other smartphones. A user who wants to switch from the iPhone must also purchase an Android-compatible smartwatch.
- Digital Wallets - Apple does not let banking apps access NFC and provide digital payments services, and customers are not able to choose their "trusted banking apps" as their digital wallet. Apple also prevents developers from creating cross-platform wallets that would make it easier to switch from iPhone to Android, and alternative wallets could also be used for in-app purchases. The DoJ claims that the payments that banks make to Apple for using Apple Pay would otherwise be used for features and benefits for smartphone users.
Privacy and Security
The DoJ suggests that Apple justifies its anticompetitive conduct with privacy and security concerns.
- Apple spends billions on marketing to promote "the self-serving premise that only Apple can safeguard consumers' privacy and security interests."
- Apple selectively compromises privacy and security interests when it is in Apple's financial interest. The examples used here include the lack of end-to-end encryption between Android and iPhone messages and the making Google the default browser engine when "more private options" are available.
- The safe, secure experience on Mac is evidence that Apple's control over app distribution and creation is "substantially more restrictive than necessary to protect user privacy and security."
- Apple makes the iPhone less secure if that helps it maintain monopoly power. The DoJ cites unencrypted text messages sent from iPhones to Android phones as an example. "If Apple wanted to," it could let iPhone users send encrypted messages to Android users.
The App Store
The DoJ mentions Apple's App Store policies and fees, but it is not the main focus of the lawsuit. While the DoJ was preparing its case, the Apple vs. Epic Games lawsuit took place, and Apple was found not to have a mobile gaming monopoly. That undoubtedly influenced the DoJ filing, but there is wording here... Click here to read rest of article
Article Link: Apple vs. the U.S. Department of Justice: What You Need to Know
- Article Link
- https://www.macrumors.com/guide/apple-vs-doj/